E3-2. Cognitive Bias. A team of accounting students is working on a case where they are required to assess a set of information to determine a company's allowance for bad debts. The students have many pieces of information to analyze, including: The company's allowance for bad debts has been 5% of its receivables for the last several years. This year, the company has strengthened its credit extension policy The average time that an accounts receivable has been outstanding has increased from 40 to 50 days * this year The economy has weakened over the year, with a pending recession Following is part of the d of cognitive bias most consistent with the statements made by each student, providing an explanation for your answer at their first team meeting. Analyze the discussion and determine the type E3-2. Cognitive Bias. A team of accounting students is working on a case where they are required to assess a set of information to determine a company's allowance for bad debts. The students have many pieces of information to analyze, including: The company's allowance for bad debts has been 5% of its receivables for the last several years. This year, the company has strengthened its credit extension policy The average time that an accounts receivable has been outstanding has increased from 40 to 50 days * this year The economy has weakened over the year, with a pending recession Following is part of the d of cognitive bias most consistent with the statements made by each student, providing an explanation for your answer at their first team meeting. Analyze the discussion and determine the type