The accounts receivable turnover ratio for your company is very low (much lower than the industry) and accounts receivable are eating up more of the working capital than 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 a cash promotion that you finance yourself which will allow customers to buy more products today but not have to pay for them for 6 months (a popular sales promotion)

Answer rating: 100% (QA)

Answer A Conduct a credit review of customers prior to ... View the full answer