1. Do you anticipate any significant collection problems? Your allowance for doubtful accounts to open accounts is a low ratio compared to prior yearswe noted that it is just over 11% this year, compared to much higher levels in the past. Do you think this is a reasonable ratio?

Early in the year we wrote off only $26,500 of receivables, which is quite a bit lower than the amount we allowed for last year. Rick, Kay, and I agree that we may lose up to $35,000 from the open accounts as of December 31, 20X4. That's reflected in the bad debt expense entry. The allowance for bad debts was just a "squeeze." By the way, we are finding that our customers who are buying only the inventory items are quicker to pay and less likely to default so we think this ratio should be somewhat lower going forward.

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Hi I need help the IRAC