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Now assume sales for Quality Shipping Company ( introduced in Question 2 ) still equal $ 9 . 0 million, all of which are still

Now assume sales for Quality Shipping Company (introduced in Question 2) still equal $9.0 million, all of which are still credit sales. However, the firm now maintains a DSO of 27 days. Determine the firm's reduction or increase in Accounts Receivable at the new level of DSO. For your calculation, again, assume a 360-day year.
A. Increase by $125,000
B. Increase by $42,500
C. Decrease by $25,000
D. Decrease by $42,500
E. Decrease by $125,000
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