December 31 2021 Accounts Receivable 5,000 Inventory 6,500 Prepaid Insurance 8000 Accounts Payable-Inventory 8,000 Accounts Payable-Operating 11,000 December 31 2020 4,000 5,200 4,400 9,000 13,000 Fees Earned Cost of Goods Sold Insurance Expense Operating Expenses 46,000 13,000 8,000 25,000 1. While using the indirect method, how would the change in account receivable inventory be treated? A) It would be added to net income. B) It would be deducted from net income. 2. While using the indirect method, how would the change in accounts payable inventory be treated? A) It would be added to net income. B) It would be deducted from net income