$15-14$ Wall$-$to$-$Wall Remodeling's $($WWR$)$ annual sales

currently are $$360,000,$ all of which are on credit.

WWR$\text{'}$s credit terms are net $40,$ and accounts

receivable normally equal $$50,000.$ WWR is

considering changing the credit terms to net $30$ in

an effort to reduce the average collection period.

If the credit terms are changed, WWR expects sales

to decrease to $$320,000$ and the average accounts

receivable balance to decrease to $$32,000.$

Compute the days sales outstanding $($DSO$)$ under

each policy to determine whether the change in

credit terms is beneficial. $($LO $15-4)$