Question

(3) Bad debt is not possible in mail order shops. why?​

Answer 1

Mail order houses are the retail outlets that sell their merchandise through mail. There is generally no direct personal contact between the buyers and the sellers in this type of trading. ... In this arrangement there is no risk of bad debt, as the goods are handed over to the buyers only after he makes full payment.

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Answer 2

Answer:

Since the mail order do not provide credit facilities to the customers, so there is no chance of bad debt.