Henderson Office Supplies Is Considering A More Liberal Credit Policy To Increase Sa 4078570

Henderson Office Supplies is considering a more liberal credit policy to increase sales, but it expects that 8 percent of the new accounts will be uncollectible. Collection costs are 5 percent of new sales, production costs are 78 percent of sales, and accounts receivable turnover is five times. Assume an increase in sales of $60,000. No other asset buildup will be required to service the new accounts.