The best managed companies will have

A) no uncollectible accounts.
B) a very strict credit policy.
C) a very lenient credit policy.
D) some accounts that will prove to be uncollectible.

Uncollectible Accounts

Accounts receivable that a company has deemed uncollectible from debtors, leading to their classification as bad debts.

Credit Policy

Guidelines a company utilizes to determine to whom to extend credit and under what terms, impacting its risk and customer relations.