You are the finance officer at a bank where the owner of Delta Designs is applying for a $600,000 loan. In reviewing the account information for the year ended June 30, 2023 you are concerned by the following selected adjusted account information:

*85% of this balance represents receivables that are not yet due. Delta Designs offers credit terms of 2/10, n/30. **All sales are on credit and sales occur evenly throughout the year.

Required
Using the elements of critical thinking described on the inside front cover, respond.

Transcribed Image Text:

Accounts receivable*.. Allowance for doubtful accounts. Sales**. Account Debit $472,000 Credit $ 7,080 3,980,000