Which of the following is true of cash discount? A) It increases bad

Which of the following is true of cash discount?

A) It increases bad debts because after availing discounts all customers may not pay.
B) It decreases the investment in accounts receivable and increases the per unit profit.
C) It helps to speed up collections without putting pressure on customers.
D) It reduces sales because the customers feel that the products are of inferior quality.

ANSWER

C