A company is experiencing a decrease in their bad debt expense. What change in credit...

80.2K

Verified Solution

Question

Accounting

A company is experiencing a decrease in their bad debt expense. What change in credit policy would cause this decrease?

a. The credit period was reduced, and all customers were required to pay their bills within 30 days of receipt of their bill instead of the previous 60 days.

b. The company discontinued credit checks on new customers.

c. Credit limits were increased for all customers.

d. Credit terms 2/10, n/30 were granted on all credit sales.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students