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Place the following steps for developing a credit policy in the correct order of process: A: The company hopes that few customers will miss payments, so it decides to take no action to collect bad debts. B: The company decides that payments must be made within 45 days. C: The company decides that it's willing to lose sales in exchange for less bad debt risk. B, C, A C, A, B B, A, C C, B, A

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Answer: C, B, A

Explanation:

First the company would decide that it would like less bad debt risk and would be willing to risk losing sales by instituting tougher restrictions on credit sales.

One such restriction would be that payments must be made within 45 days.

With this restriction, the firm will hope that less doubts are defaulted on so it will not take any action to collect bad debts.

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