Multiple Choice : Show supporting computations in good form. No computation, no point For. Nos. 1 and 2 Patience Corporation is planning to change its credit policy. The proposed change is expected to: Shorten the collection period from 50 days to 30 days Increase the ratio of cash sales to total sales from 20% to 30%. Decrease total sales by 10% 1. If projected sales for the coming year is P40M, what is the peso impact on the average accounts receivable balance of the proposed change in credit policy? Use 360 days a. P2,344,444 decrease c. P6,800,000 decrease b. P2,100,000 decrease d. P18,889 decrease 2. What is the impact of the proposed credit policy on the company's accounts receivable turnover? a. Decrease by 7.2 c. Decrease by 20 days b. Increase by 4.8 d. Increase to 4.8 times 3. Love Traders sells on credit terms of 2/10, net 30. Average daily credit sales is P50,000. On the average, 70% of the customers of the customers avail of the discount and pay on the 10th day of the purchase, while the rest pays on the last day of the credit term. How much is the accounts receivable balance? a. P1,500,000 b. P1,050,000 c. P800,000 d. P450,000