1. As a result of the changes in collection procedures, average accounts receivable balance will increase or (decrease) by a. (900,000)b. 90,000c. 900,000d. 32,400,000 2. To make the changes in collection procedures cost beneficial, the minimum savings in collection costs for the coming year should be a. 8,100b. 81,000c. 90,000d. 900,000 Problem 8. Persian Corporation is planning to introduce changes in its collection procedures. Thenew procedures are expected to make its collection longer by 10 days, although there will be achange in bad debts. For the coming year, Persian Corporation's budgeted sales is P32,400,000.Short term interest can be expected to be at an average of 9% per annum. (Use 360 days)

1. Option C . 900000 Explanation : Total Budgeted Sales is P32,400,000 Average Accounts Receivable…

Problem 8. Persian Corporation is planning to introduce changes in its collection procedures. The new procedures are expected to make its collection longer by 10 days, although there will be a change in bad debts. For the coming year, Persian Corporation's budgeted sales is P32,400,000. Short term interest can be expected to be at an average of 9% per annum. (Use 360 days)

Problem 8. Persian Corporation is planning to introduce changes in its collection procedures. The new procedures are expected to make its collection longer by 10 days, although there will be a change in bad debts. For the coming year, Persian Corporation's budgeted sales is P32,400,000. Short term interest can be expected to be at an average of 9% per annum. (Use 360 days)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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