Managing Accounts Receivable is also known as Credit Management or Credit Control.
In an organization, credit sales form large portion of the sales re: about 15% to 25% of a firm’s assets. To increase sales, top management will resort to increasing/extending the credit period to the customers.
Append below showed how we compute the viability when a firm relax or extend its credit period to boost its sales.
- Working Capital Management:Extending Credit Terms To Increase Sales
- How To Compute And Improve The Cash Conversion Cycle(CCC) (Part 2)
- Accounting Test No BD 2 : Accounts Receivable And Bad Debts
- Answer To Accounting Question BD Test No 2 On Accounts Receivables And Bad Debts
- Basic Understanding Of Cost Of Capital/Weighted Average Cost Of Capital