What is the amount of the companys accounts receivable

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Essence of Skunk Fragrances, Ltd., sells 5,500 units of its perfume collection each year at a price per unit of $385. All sales are on credit with terms of 3/20, net 40. The discount is taken by 45 percent of the customers. (Enter your answer as directed, but do not round intermediate calculations.) Requirement 1: What is the amount of the company’s accounts receivable? (Round your answer to 2 decimal places (e.g., 32.16).) Average receivables $ Requirement 2: In reaction to sales by its main competitor, Sewage Spray, Essence of Skunk is considering a change in its credit policy to terms of 5/20, net 40 to preserve its market share. Will this change in policy increase or decrease accounts receivable?

Reference no: EM13913890


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