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A company's budgeted sales for the coming year are $40,500,000, of which 80% are expected...

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Accounting

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A company's budgeted sales for the coming year are $40,500,000, of which 80% are expected to be credit sales at terms of n/30. The company estimates that a proposed relaxation of credit standards and increase the average collection period from 30 days to 40 days. Based on a 360-day year, the proposed relaxation of credit standards will result in an expected increase in the average accounts receivable balance of will increase credit sales by 20% OA. $1.620,000 B. $2,700,000 C. S540,000 D. $900,000

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