Table 15.6 A Breakdown of Teffan, Inc.'s Outstanding Accounts Receivable Dated June

Multiple Choice

Table 15.6
A breakdown of Teffan, Inc.'s outstanding accounts receivable dated June 30, 2014 on the basis of the month in which the credit sale was initially made follows. The firm extends 30-day credit terms.
-An increase in accounts receivable turnover for a firm due to an increase in collection efforts will ________.

A) decrease the firm's marginal investments in accounts receivable
B) increase the firm's marginal investments in accounts receivable
C) decrease the firm's collection expense
D) increase the firm's bad debt expense