Example of Relaxing Credit Standards Additional annual credit sales of $120,000 and an average collection period for new accounts of 3 months is expected. The before-tax opportunity cost for each dollar of funds died-up in additional receivables is 20% Ignoring any additional bad-debt losses that may arise, should Basket Wonders relax their credit standards? 10-710-7 Example of Relaxing Credit Standards Additional annual credit sales of $120,000 and an average collection period for new accounts of 3 months is expected. The before-tax opportunity cost for each dollar of funds died-up in additional receivables is 20%. Ignoring any additional bad-debt losses that may arise, should Basket Wonders relax their credit standards?