Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 8 - Reporting and Analyzing Receivables - Questions - Page 427: 21

Answer

Advantages of selling receivables: The company sells their receivables to collecting agencies for a small service change (fee), and gets the payments immediately.

Work Step by Step

This saves the company from the task of collections and the loss due to Bad debts.
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