Which one of the following will increase the average balance in accounts receivable?

A) A decrease in the discount period.
B) Cash sales as an increased percentage of total sales.
C) A decrease in the firm's cheque processing time.
D) An increase in the sales amount per customer.
E) A decrease in the trade discount.

Discount Period

The time frame during which a seller offers a buyer a reduction from the normal cost of a good or service, often to incentivize prompt payment.

Cash Sales

Cash sales refer to transactions where payment is made in full with cash at the time of the sale, without any credit.

Cheque Processing Time

The period it takes from when a cheque is issued until the funds are available in the payee’s account, reflecting bank processing durations.