The Salah Company sells electronics equipment and has grown rapidly in the last year by adding new customers. The audit partner has asked you to evaluate the allowance for doubtful accounts at December 31, 2023. Comparative information on sales and accounts receivable is included next: 

a. Identify what tests of controls and substantive tests of transactions you recommend be performed before conducting your analysis of the allowance for doubtful accounts. 

b. Perform substantive analytical procedures to evaluate whether the allowance is fairly stated at December 31, 2023. Assume performance materiality for the allowance account is $15,000.

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Sales Accounts Receivable Allowance for doubtful accounts Bad debt charge-offs Year Ended 12/31/23 $12,169,876 1,440,381 90,000 114,849 Year Ended 12/31/22 $10,452,513 1,030,933 75,000 103,471