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Question 29 7 Points Pierce Produce has credit sales of $800,000 yearly with customers paying on average in 60 days. Pierce Produce does not currently
Question 29 7 Points Pierce Produce has credit sales of $800,000 yearly with customers paying on average in 60 days. Pierce Produce does not currently offer a discount for early payment. Required: 1: What is the average receivables balance? 2. Assume Plerce Produce offers new trade terms of 2/10, Net 30. All customers take the discount and pay in 10 days, and sales Increase by 10 percent as a result of this discount incentive. If Pierce Produce earns 20 percent on sales before discounts) and can reduce their 4% bank loan due to the early payments should they offer these new discount terms? Support your answer with all relevant calculations Use the torto format your
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