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Signals of the fictitious reporting scheme of understating bad debts include: 1) Unusually large net accounts receivable 2) Decrease in reserve for bad debts as

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Signals of the fictitious reporting scheme of understating bad debts include: 1) Unusually large net accounts receivable 2) Decrease in reserve for bad debts as a percentage of accounts receivable 3) Increase in accounts receivable as a percentage of total current assets 4) All of the above

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