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Six months ago, directors of Dorking Co decided to increase sales volume by offering attractive credit terms to new customers. The company also offered its salesmen commission based on gross sales value. As a result the company's sales have increased but so have the bad debts. Which of the following internal control activities is most likely to prevent irrecoverable debts? A. The credit control department should establish and approve the credit worthiness of all customers before acceptance of a sales order. B. The sales director should fix a sales quota for each salesman. C. The accounts department should perform an age analysis of the receivable balances. D. Irrecoverable debts should be written off only after approval from the sales director. |