All categories

2 years ago

How can a company limit bad debts?

Business

2 answers:

xxTIMURxx [149]2 years ago

8 0

$\huge\pink{Q}\pink{u}\pink{e}\pink{s}\pink{t}\pink{i}\pink{o}\pink{n}\pink{:}$

How can a company limit bad debts?

<h2>• Answer •</h2>

Filter your customers. Not all customers are good for your business.
Require up-front payments.
Set reasonable credit limits.
Provide clear payment terms and penalties.
lmprove your accounting.Implement strict collection procedures.
Use cloud-based software for debt collection.

elena-s [515]2 years ago

3 0

Answer:

The best way of controlling bad debts is not to provide credits to everyone. As more amount of credit will be given to the people, the risk of bad debts will increase. The funds left should be used for the development of the company.

Explanation:

hope it helps :)

pls mark brainleist :P

Tori

You might be interested in

Which term refers to developing product or service offerings customized for a customer segment and then pricing and communicatin

Arturiano [62]

Answer: Customer centric philosophy

Explanation: In a customer centric way of doing business, the main focus of the entity remains on providing a customer positive experience before and after the sale. This can be achieved by customizing the offered goods or services as per the needs of the customers.

Thus, from the above we can conclude that the right answer is customer centric philosophy.

5 0

2 years ago

Which of the following is an example of marginal cost?

cestrela7 [59]

Answer:

Explanation:

6 0

3 years ago

In the context of entrepreneurial behavior, the need for affiliation is the need to excel.

mr Goodwill [35]

Answer:

False

Explanation:

The need for affiliation refers to the need people have to feel that they are part of a social group. People that have a high need for affiliation requires close relationships and needs to be approved by the people that are close to them. Also, they want to feel that they are part of something that has an important impact. According to this, the statement that says that the need for affiliation is the need to excel is false.

8 0

2 years ago

Mountain High Ice Cream Company transferred $72,000 of accounts receivable to the Prudential Bank. The transfer was made with re

docker41 [41]

Answer:

Journal Entry

Explanation:

Cash Dr, $63,360

Loss on sale receivable Dr, $6,640

Receivable from factor Dr, $6,200

To resource liability $4,200

To Accounts receivable $72,000

(Being transfer on the books of Mountain High is recorded)

Working Note :-

2% × $72,000 = $1,440

Cash = ($72,000 × 0.90) - ($72,000 × 0.02)

= $64,800 - $1,440

= $63,360

Loss on sale receivable = ($4,200 + $72,000) - ($63,360 + $6,200)

= $76,200 - $69,560

= $6,640

8 0

3 years ago

Freitas Corporation was organized early in 2021. The following expenditures were made during the first few months of the year: A

goldfiish [28.3K]

Answer:

Dr Organization costs ($12,000 + $3,000) 15,000

Dr Patent ($20,000 + $2,000) 22,000

Dr Equipment 30,000

Dr Preopening expenses 40,000

Cr Cash 107,000

Explanation:

Organization costs are the initial costs incurred to start a business. They include attorney fees, and any other legal and registration fees required by both municipal state and federal government.

Any fees related to the purchase of the patent, e.g. commissions paid or attorney fees must be included in the purchase cost of the patent.

8 0

3 years ago