Explore BrainMass

Explore BrainMass

    Credit Policy

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Credit Policy. As treasurer of the Universal Bed Corporation, Aristotle Procrustes is worried about his bad debt ratio, which is currently running at 6 percent. He believes that imposing a more stringent credit policy might reduce sales by 5 percent and reduce the bad debt ratio to 4 percent. If the cost of goods sold is 80 percent of the selling price, should Mr. Procrustes adopt the more stringent policy?

    © BrainMass Inc. brainmass.com November 30, 2021, 12:38 am ad1c9bdddf
    https://brainmass.com/business/credit-management-credit-policy-analysis-and-risk/52000

    Solution Summary

    The solution is in a word document that shows a step by step solution.

    $2.49

    ADVERTISEMENT