average collection period

1. A firm is currently selling on credit terms of “net 30,” and its accounts receivable average 30 days past due (i.e., the firm’s average collection period is 60 days). What credit policy variables might the firm consider changing to reduce its average collection period?
2. “The objective of the firm’s credit and collection policies should be to minimize its bad-debt losses.” Do you agree or disagree with this statement? Explain.