Essence of Skunk Fragrances, Ltd., sells 6,000 units of its perfume collection each year at a price per unit of $390. All sales are on credit with terms of 2/25, net 30. The discount is taken by 40 percent of the customers. (Enter your answer as directed, but do not round intermediate calculations.)

Requirement 1:

What is the amount of the companys accounts receivable? (Round your answer to 2 decimal places (e.g., 32.16).)

Average receivables

$

Requirement 2:

In reaction to sales by its main competitor, Sewage Spray, Essence of Skunk is considering a change in its credit policy to terms of 4/25, net 30 to preserve its market share. Will this change in policy increase or decrease accounts receivable?

(Click to select)IncreaseDecrease