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Accounting 2 chapter 8- How can companies manage credit accounts effectively to minimize losses? -What kind...

Accounting 2 chapter 8- How can companies manage credit accounts effectively to minimize losses? -What kind of credit policies should businesses implement to keep customers buying while increasing their receivables turnover rate?

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At first company credit worthinewss is should be seen. The company should set a limit for credit accounts so the excess amounts cannot be flown from the company which causes losses.they should implement various plans for the credit accounts frequently.

The company should allow the customer for delay in payments. So that the consumers can be attracted to this plans. They should allow discount so that consumers can pay amount in minimum time given. Business house should collect the amount timely so that working capital cannot be affected...

From this it was clear that 1)account recieveble ratio 2)collecting timely payments 3) discount's are key factors increasing recible turnover rate.

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