Use the balance sheet and income statement of Target Corporation, in Appen- dix A. 1. How much did customers owe Target at January 29, 2000? Of this amount, how much did Target expect to collect? How much did Target expect not to collect? To answer these questions, refer to

(a) Target's balance sheet (statement of financial position) and

(b) the note entitled "Allowance for Doubtful Accounts" on page 22 of the Target Annual Report. Retained securitized receivables is Target's name for its accounts receivable. 2. During the year ended January 29, 2000. Target recorded doubtful-account expense of $147 million. The company also wrote off uncollectible receivables of $147 million. Prepare a T-account for Allowance for Doubtful Accounts. Insert the current year's beginning and ending balances as reported in the note. Then post the doubtful-account expense for the year and the write-offs for the year into the T-account. After your postings, the Allowance account should show all of Target's bad-debt activity for the current year. 3. Compute Target's acid-test ratio at January 29, 2000. If all the current liabilities came due immediately, could Target pay them?