What is the reduction in outstanding accounts receivable, Financial Management

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What is the reduction in outstanding accounts receivable

What is the reduction in outstanding accounts receivable given the following information? As the A/R decreases, what account increases as a result?

Annual sales of $5,000,000 with a DSO of 18. A new collection incentive has reduced DSO from 18 to 12.

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Financial Management: What is the reduction in outstanding accounts receivable

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