Chapter-8BarryBus21

The higher the ratio the faster the collection of

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Unformatted text preview: he faster the collection of receivables. Rather than evaluate the number of times accounts receivable turn over, some people find it easier to think in terms of the number of days to collect receivables (called days to collect). 31 32 33 Speeding Up Collections Factoring Receivables One way to speed up collections is to sell outstanding accounts receivable to another company (called a factor). Your company receives cash for the receivables it sells to the factor (minus a factoring fee). Credit Card Sales Another wa...
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This document was uploaded on 03/13/2014 for the course BUS 021 at UC Riverside.

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