The following accounts receivable information is for Trapper Company:

Required:
1. With the big increase in Allowance for Bad Debts in 2012, Trapper Company is concerned that the creditworthiness of its customers declined from 2011 to 2012. 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 2012?Explain.

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2011 $135,000 S 76,000 12,000 280,000 265,000 240,000 2012 2010 Accounts receivable Allowance for bad debts Sales revenue 8,000 4,900 7,800