Which of the Following Is Not Correct

Which of the following is not correct?

A) a more aggressive collection policy will reduce bad debt expenses, but may also decrease sales.
B) collection policy usually has little impact on sales since collecting past-due accounts occurs only after the customer has already purchased.
C) typically a firm will turn over an account to a collection agency only after it has tried several times on its own to collect the account.
D) a lax collection policy will frequently lead to an increase in accounts receivable.
E) collection policy is how a firm goes about collecting past-due accounts.

Correct Answer:

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