3. Allowance for doubtful accounts increased from the prior year, but allowance for doubtful accounts as a percentage of accounts receivable decreased from the prior year. Which of the following is not a possible explanation for this finding? Items shipped on consignment during the last month of the year were recorded as sales. A significant number of credit memos for returned merchandise that were issued during the last month of the year were not recorded. A larger percentage of sales occurred during the last month of the year, as compared to the prior year. Sales increased at a lower percentage than cost of goods sold increased, as compared to the prior year. a. b. c. d. Long-term debt increased from the prior year, but interest expense increased a larger-than- proportionate amount than long-term debt. Which of the following is a possible explanation for this finding? 4. a. A significant amount of long-term debt was paid off during the current year. b. Long-term borrowing was refinanced on a short-term basis at lower interest rates. c. Short-term borrowing was refinanced on a long-term basis at lower interest rates. d. Short-term borrowing was refinanced on a long-term basis at higher interest rates