Explain the level of account recievable

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Reference no: EM13109409

Standard corporation has annual credit sales of $250 000 as well as an average collection period of 40 days. It plans to change its credit terms from net 40 to 3/10, net 40.This is expected to decrease the average collection period by 10 days. Half of the customers are expected to take advantage of this 3% cash discount. There will not be any change in the bad debts.
Compute
A the level of account recievable.
B the level of account recievable after the change to 3/10 net 40.
C the net increase or decrease in accounts recievable.

Reference no: EM13109409

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