Question: When performing analytical procedures, the CPA noted that the ratio of the Allowance for U / A divided by Accounts Receivable has decreased compared to

When performing analytical procedures, the CPA noted that the ratio of the Allowance for U/A divided by Accounts Receivable has decreased compared to the prior year. This trend suggest which of the following account misstatements?
Question options:
Net A/R is overstated
Allowance for U/A is overstated
Bad debt expense is understated
Bad debt expense is overstated

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