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Accounting Receivables Management DecisionWeddings on demand sells on account and manages its own receivables. Average experience for the past three months has been as follows:Sales $350,000Cost of Goods Sold $210,000Bad Debts Expense $4,000Other Expenses $61,000Unhappy with the amount of bad debt expenses she has been experiencing, Aledia Sanchez, controller, is considering a major change in the business. Her plan would be to stop selling on account altogether but accept cash, credit cards, or debit cards. Her market research indicates that if she does so, her sales will increase by 10% (from $350,000 to $385,000), of which $200,000 will be credit or debit card sales andthe rest would be cash sales. With a 10% increase in sales, there will also be a 10% increase in Cost of Goods Sold. If she adopts the plan, she will no longer have bad debt expense, but she will have to pay a fee on debit and credit card transactions of