Response to the following questions:
1. Granting credit to customers means that the firm will not receive the cash from their sales for some time after the sale. Why do firms extent credit to customers?
2. What do the credit terms "2/10, net 30" mean? If a firm changes their credit terms from "2/10, net 30" to "3/10, net 30," what do you expect to happen to its investment in accounts receivable?