For your project this week, complete the following:Create a post answering the following questions about risks your company could encounter:How many days are you willing to wait to receive payment from your customers? How would you analyze your receivables and inventory turnover? When issuing credit to a customer, what kinds of safeguards would you have? What kinds of red flags would you look for when you sell to someone for the first time? In case of inventory destruction (natural disaster, etc.), what is your risk prevention plan? Download the Account Receivable Aging Schedule spreadsheet.Imagine that you've sold 1000 units of your new product on account, and you expect to receive payment based on your risk analysis. Just when things seem to be going great, 10% of your customers miss the deadline. Based on this scenario, update the Account Receivable Aging Schedule spreadsheet to account for the risk of non-payment of account receivables. How would you account for the write-off of these receivables?Update the following tabs in your Project Journal spreadsheet as needed:Statement of Retained EarningsBalance SheetProfit and LossCreate a post in this forum including the following:Your updated Project Journal spreadsheetYour Account Receivable Aging Schedule spreadsheetAnswers to the questions above about your productHow would you reinstate a customer you wrote off as a bad debt? Bad-Debt Reporting?Aging Your Corporation operates in an industry that

ET SMe dy ee edi 4 Your Corporation operates in an industry that has a high rate of bad debts. Before any year-end adjustments, the balance in Your company's Accounts Receivable account was $555,000 and Allowance for Doubtful Accounts had a credit balance of 540,000. The year-end balance reported in the balance sheet for Allowance for Doubtful Accounts will be based on the aging schedule shown below. Probability of Days Account Outstanding Amount Collection Less than 16 days S 300,000 0.98 Between 16 and 30 days 100,000 0.50 Between 31 and 45 days 80,000 0.85 Between 46 and 60 days 40,000 0.80 Between 61 and 75 days 20,000 0.55 Over 75 days (to be written off) 15,000 0 Instructions a. What is the appropriate balance for Allowance for Doubtful Accounts at year-end? b Show how accounts receivable would be presented on the balance sheet. c. What is the dollar effect of the year-end bad debt adjustment on the before-tax income? a. Expected Percentage Estimated Days Account Outstanding Amount Uncollectible Uncollectible 0-15 days 300,000 0.02 S$ 6,000 1630 days 100,000 0.10 10,000 31-45 days 80,000) 0.15 12,000 46-60 days 40,000 0.20 8,000) 61-75 days 20,000 0.45 9,000 Balance for Allowance for Doubtful Accounts 6 45 (0M) b, Accounts receivable (net) 495,000 c. Decrease to before-tax income S$ 20,000