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Which of the following could be the cause of a decrease in account receivable turnover/increase in days sales in receivables? Select the single best choice.
Which of the following could be the cause of a decrease in account receivable turnover/increase in days sales in receivables? Select the single best choice.
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Customers are experiencing tightening liquidity and delaying payment.
Customers have excess cash and are paying more quickly than in the past.
The Company uses the allowance method to calculate the allowance for uncollectible accounts.
The sales mix has changed to fewer customers purchasing on account
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