You are meeting with your introductory accounting study group when one of the group members states:
“The balance in a company’s allowance for expected credit losses account represents the amount of credit losses that were recorded during the period, and the company’s net income was reduced by this amount. The allowance for expected credit losses is always a function of the length of time that the company’s receivables have been outstanding.”

Required
Identify two ways to substantively improve your classmate’s response.