=+LG 4 P15–8 Accounts receivable changes without bad debts Clear Glass Company sells glass containers. It reported total sales of $1,580,000, with 60% of the sales on credit.

It takes 60 days to collect accounts receivable. The selling price is $20 per container while the variable cost is $15 per container. The board is currently investigating a change in the collection of accounts receivable that is expected to result in a 20% increase in credit sales and a 10% increase in the average collection period. No change in bad debt is expected. The firm’s opportunity cost on its investment in accounts receivable is 12%. (Note: Use a 365-day year.)