In the previous problem, if accounts receivable change in 2016 to $138,600, and credit sales increase to

Question:

In the previous problem, if accounts receivable change in 2016 to $138,600, and credit sales increase to $1,204,500, should we assume that the firm has a more or less lenient credit policy?

Previous Problem

Darla's Cosmetics had annual credit sales of $1,003,750 and an average collection period of 36 days in 2015. What was the company's average accounts receivable balance?

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...

Fantastic news! We've Found the answer you've been seeking!