1. During 2023, Katieco's sales increased by 20%. If accounts receivable for the same period increased by 10%, this probably indicates that"

• the company changed to only debit or bank credit card sales.
• the company may be increasing sales by giving longer time to pay.
• the company's collection policies have become more aggressive. (pushing customers to pay faster)
• stated credit term has been increased (for example changing from 15 days to 30 days).

2. The Allowance method for recording uncollectible accounts is GAAP because

O of the matching principle.

O of the definition of an asset (assets must have future benefit)

O assuming $0 allowance and $0 expense is not usually consistent with past experience.

O all of the above