When a Firm Initiates or Increases a Cash Discount, Sales

Multiple Choice

When a firm initiates or increases a cash discount, sales are expected to____________ , the investment inaccounts receivable is expected to _____________, the bad debt expense is expected to____________ , and theprofit per unit is expected to____________ .

A) increase; increase; decrease; decrease
B) decrease; increase; increase; increase
C) decrease; decrease; increase; increase
D) increase; decrease; decrease; decrease