19 Sales amount to P2,500,000. Sales terms are being revised from n/60 to n/45 andsales are expected to decrease by 10%. How much would be the increase (decrease)in average receivables as a result of this change ?P135417P104,167(P135417)(P104,167)

Sales Amount is P2,500,000 Sales term initial is n/60 Sales term revised to n/45 Expected decrease…

Answered: Sales amount to P2,500,000. Sales terms…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

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Chapter18: The Management Of Accounts Receivable And Inventories

Section: Chapter Questions

Problem 15P

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The aging of accounts receivable shows the following: P300,000 already 1-30 days past due; P200,000 already 31-60 past due; and P100,000, 61-90 days past due. Based on company experience, the rate of doubtful collections is as follows: 2%, 4% and 7%, respectively. 1. How much is the amount of uncollectible accounts from the 31-60 days past due? 2.
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Sales amount to P2,500,000. Sales terms are being revised from n/60 to n/45 and sales are expected to decrease by 10%. How much would be the increase (decrease) in average receivables as a result of this change ? P135417