The following accounts receivable information is for MaScare Company:

1. With the big increase in the Allowance for Bad Debts in 2003, MaScare Company is concerned that the creditworthiness of its customers declined from 2002 to 2003. Is there any support for this view in the accounts receivable data? Explain. 2. Interpretive Question: Is there any cause for alarm in the accounts receivable data for 2003? Explain.

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2003 Accounts receivable $100,000 Allowance for bad debts Sales revenue. 4,000 210,000 2002 $ 30,000 2,000 180,000 2001 $ 50,000 3,000 170,000