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Piedmont Industries sells on terms of 2/10 net 30. Total sales for the year are $2 million. Twenty percent of customers pay on the 10th
Piedmont Industries sells on terms of 2/10 net 30. Total sales for the year are $2 million. Twenty percent of customers pay on the 10th day and take discounts; the other 80% pay, on average, 50 days after their purchases. What would happen to average receivables if Piedmont toughened its collection policy with the result that all non-discount customers paid on the 35th day
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