The treasurer of Gould's Stores, Inc., was interested in what effect, if any, new credit terms have had on collections of customer accounts. The usual 30-day payment period was shortened to 20 days in an attempt to reduce the investment in accounts receivable. The following information for the current year and the preceding year (prior to the payment period change) is available:

Required:
What effect has the new credit policy apparently had?

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Current Year Accounts receivable (net of bad debt allowance) 1,392,790 13,035,085 Preceding Year s 1,207,393 11,597,327 Credit sales