3.

At a manufacturing firm, the accounting department sees an increase in the number and dollar value of bad debt write-offs. What questions should you ask to understand the problem? Select ALL that apply.

		Has the company recently changed its credit policy? If so, why?
		What collection procedures does the company employ? Are they adequate? If not, why not?
		Are current economic conditions affecting delinquency rates?
		What economic conditions are affecting production costs?