Question

A reasonable amount of uncollectible accounts is evidence Group of answer choices that the credit policy is too strict. that the credit policy is too lenient. of a sound credit policy. of poor judgments on the part of the credit manager.

Answer 1

. of a sound credit policy.

Step-by-step explanation:

credit policy can be regarded as set of guidelines which is sets as terms for credit and payment for customers, It establishes clear course of action as regards late payments, it also Set term of payment for parties to whom credit is been extended. It also define that is required to be set as regards outstanding credit accounts.

The elements of credit policy of a firms are;

✓collection policy

✓ credit period

✓credit standards

✓discounts

It should be noted that A reasonable amount of uncollectible accounts is evidence of a sound credit policy.