What proposed relaxation of credit standards would result

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Problem 1: BabyTawan Co.'s budgeted sales for the coming year are P48,000,000, of which 80 percent are expected to be credit sales of n/30. BabyTawan Co. estimates that a proposed relaxation of credit standards would increase credit sales by 30 percent and increase the average collection period form 30 days to 45 days. Based on a 360- day year, the proposed relaxation of credit standards would result in an expected increase in the accounts receivable balance of

A. P 960,000

B. P3,040,000

C. P1,440,000

D. P3,440,000

Reference no: EM132745879

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