DSO and Accounts Receivable

DSO and Accounts Receivable

Harrelson Inc. currently has $750,000 in accounts receivable, and its days sales
outstanding (DSO) is 55 days. It wants to reduce its DSO to 35 days by pressuring
more of its customers to pay their bills on time. If this policy is adopted the company’s
average sales will fall by 15 percent. What will b

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