Jomal Corporation Expects to Receive $2,300 Along with Costs of $1,800

Multiple Choice

Jomal Corporation expects to receive $2,300 along with costs of $1,800 on each non-delinquent sale on credit.The probability of collection is 85%.Determine whether credit should be extended.

A) Extend credit - net benefit of $155
B) Extend credit - net benefit of $80
C) Do not extend credit - net detriment of $155
D) Do not extend credit - net detriment of $80