Which of the following is not an element of credit policy?

The correct answer is D. Sales Price.

A credit policy is a set of rules that a company uses to determine whether to extend credit to customers, and if so, on what terms. The four main elements of a credit policy are:

• Credit terms: These are the terms under which a company extends credit to its customers. They include the length of the credit period, the interest rate, and any other fees that may be charged.
• Collection policy: This is the process that a company uses to collect payments from its customers. It includes the steps that the company takes to remind customers of their payments, and the actions that the company takes if a customer does not pay on time.
• Cash discount terms: These are the terms under which a company offers a discount to customers who pay their invoices early.
• Sales price: This is the price that a company charges for its products or services.

Sales price is not an element of credit policy because it is not a decision that is made based on the creditworthiness of the customer. The sales price is determined by the company’s marketing and sales department, and it is not affected by the customer’s credit history or creditworthiness.