Size of Accounts Receivable Essence of Skunk Fragrances, Ltd., sells 4,500 units of its perfume collection each

Question:

Size of Accounts Receivable Essence of Skunk Fragrances, Ltd., sells 4,500 units of its perfume collection each year at a price per unit of $400. All sales are on credit with terms of 2/10, net 40. The discount is taken by 60 percent of the customers. What is the amount of the company’s accounts receivable? In reaction to sales by its main competitor, Sewage Spray, Essence of Skunk is considering a change in its credit policy to terms of 4/10, net 30 to preserve its market share. How will this change in policy affect accounts receivable?

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...