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Credit and collection expenses as a percentage of net credit sales are as follows: Uncollectible accounts 1.6% billing and mailing costs .5% and credit investigation fee on new customers .2%. Sue and Sam also determine that the average accounts receivable balance outstanding during the year is 5% of net credit sales. The Ristics estimate that they could earn an average of 10% annually on cash invested in other business opportunities.InstructionsWith the class divided into groups answer the following.(a) Prepare a tabulation for each year showing total credit and collection expenses in dollars and as a percentage of net credit sales.(b) Determine the net credit and collection expenses in dollars and as a percentage of sales after considering the revenue not earned from other investment opportunities. (Note: The income lost on the cash held by the bank for 3 days is considered to be immaterial.)(c) Discuss both the financial and nonfinancial factors that are relevant to the decision.

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