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Financial Accounting : Extending Credit to a Customer

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Assume you are the credit manager of your company and a customer does not take advantage of the discount you allow by your 2/10, n/30 sales terms. What factors would you consider in making a judgment on whether you should continue to extend credit to this customer?

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Solution Summary

The factors that influence a decision to extend credit to a customer are explained in detail.

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1) Your company's cash flow - whether extending credit will affect your cash ...

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