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Analyzing the days sales outstanding

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Reference no: EM132706860

Analyzing the days sales outstanding and the aging schedule are two common methods for monitoring receivables. However, they can provide erroneous signals to credit managers when

a. Some customers take the discount and others do not

b. Sales are relatively constant, either seasonally or cyclically

c. Sales fluctuates seasonally

d. Customer's payment patterns are changing

Reference no: EM132706860

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