Essence of Skunk Fragrances, Limited, sells 6,100 units of its perfume collection each year at a price per unit of $391. All sales are on credit with terms of 330/330 , net 60. The discount is taken by 50 percent of the customers.
What is the amount of the company’s accounts receivable?
Note: Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.
In reaction to sales by its main competitor, Sewage Spray, Essence of Skunk is considering a change in its credit policy to terms of 530/530 , net 60 to preserve its market share. Will this change in policy increase or decrease accounts receivable?