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Holiday Inc. has annual credit sales of $2 million and a term of sale of net 45. If the company changed to a 2/10 net

Holiday Inc. has annual credit sales of $2 million and a term of sale of net 45. If the company changed to a 2/10 net 45, 60% of the customers will take the discount and pay within 10 days. The rest of the customers will pay within 45 days. What is the change in accounts receivable if the company changes to the 2/10 net 45 policy? Assume that none of the customers will default in either credit policy, and that there are 365 days per year.

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