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A large manufacturing firm has been selling on a 3/10, net 30 basis. The firm changes its credit terms to 3.5/9, net 25. What change

A large manufacturing firm has been selling on a 3/10, net 30 basis. The firm changes its credit terms to 3.5/9, net 25. What change might be expected on the balance sheets of its customers?

Decreased receivables and increased bank loans.

Increased receivables and increased bank loans.

Decreased payables and increased bank loans.

Increased payables and increased bank loans.

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