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    Receivables to Cash Options

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    Please concisely explain the options a company has to convert its receivables to cash.

    © BrainMass Inc. brainmass.com June 4, 2020, 1:16 am ad1c9bdddf

    Solution Preview

    If the company makes credit sales to the customers with a promise from the customers to pay within a specified due date, then the amount of credit sales is called accounts receivable.
    The amount of accounts receivable can be converted into cash by the following ways:

    1. Cash discount: The Company can give cash discounts to the customers and induce them to pay the debt immediately. By doing this, the company can ...

    Solution Summary

    This 279 word solution gives 5 separate options for a company to consider when attempting to convert their receivables into cash.