An internal auditor gathered the following accounts receivable trend and ratio analysis information:

Which of the following is the least reasonable explanation for the changes observed by the auditor?
a. Fictitious sales may have been recorded in years 2 and 3.
b. The effectiveness of credit and collection procedures deteriorated over the three-year period.
c. Sales returned for credit were overstated in years 2 and 3.
d. The allowance for bad debts was understated in years 2 and 3.

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Net accounts receivable as a percentage of total assets Accounts receivable turnover (net sales + average accounts receivable) 3 30.8% 5.21 Year 2 27.3% 6.05 1 23.4% 6.98