16. Palm Company's budgeted sales for the coming year are P40,500,000 of which80% are expected to be credit sales at terms of n/30. Palm estimates that aproposed relaxation of credit standards will increase credit sales by 20% andincrease the average collection period from 30 days to 40 days. Based on a 360-day year, the proposed relaxation of credit to standards result in an expected increase in the average accounts receivable balance ofA. P 540,000 B. P 900,000C. P2,700,000D. Pl,620,000