Problem a firm is evaluating an accounts receivable change that would
1- Accounts receivable changes with bad debts. A firm is evaluating an accounts receivable change that would increase bad debts from 2% to 4% of sales. Sales are currently 50,000 units, the selling price is $20 per unit, and the variable cost per unit is $15. As a result of the proposed change, sales are forecast to increase to 60,000 units. a. What are bad […]