QUESTION 20 Assuming Purple Company has the following growth rates, which statement would explain the pattern of growth rates? Sales growth Accounts receivable growth Allowance for doubtful accounts growth 6.7% (3.1%) The firm may have loosened its credit terms for accounts receivable, allowing customers with lower credit ratings to purchase on credit. O The firm may be correcting a prior under-estimation of the allowance account. The firm is not collecting accounts receivable. O The firm may be doing a better job collecting accounts receivable quicker and with fewer bad debts