The accounts receivable turnover ratio for your company

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Reference no: EM131555378

The accounts receivable turnover ratio for your company is very low (much lower than industry) and accounts receivable are eating up more of your working capital that you would like. Which of the following would NOT be a good way to improve this ratio?

A. Conduct a credit review of customers prior to granting them payment terms.

B. Offer customers an incentive to pay early such as 2/10, n/30

C. Call Customers the day after the due date to inquire about payment.

D. Offer a 6 month same as cash promotion that you finance yourself which will allow customers to buy more product today but not have to pay for it for 6 months (a popular sales promotion)

Reference no: EM131555378

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