A retailer can reduce its bad debt on credit sales to zero through _____.
A)using third-party credit plans and debit cards
B)developing and implementing a systematic credit authorization plan
C)developing high fees for nonpayment
D)limiting credit sales to the best credit risks

Question

Quizplus · Accepted Answer

Using third-party credit plans and debit cards shifts the risk of nonpayment to the third party, effectively reducing the retailer's bad debt on credit sales to zero.

A Retailer Can Reduce Its Bad Debt on Credit Sales