Major Electronics sells 85,000 personal stereos each year at a price per unit of $55. All sales are on credit: the terms are 3/15, net 40. The discount is taken by 40 percent of the customers.What is the investment in accounts receivable? In reaction to a competitor. Major Electronics is considering changing its credit terms to 5/ IS. net 40. to preserve its sales level. Describe qualitatively how this policy change! will affect the company's Investment. In accounts receivable.

Answer rating: 100% (QA)

Stereos 85000 Price per unit 55 Discount 3 Discount Taken by 40 Sales 4675000 Discount 56100 Net Sa... View the full answer