1. What are the advantages and disadvantages of extending credit to customers? (5 points available) 2. Which basic accounting principles does the allowance method of accounting for bad debts satisfy? (1 point available) 3. On December 31, 2020, Extreme Fitness has adjusted balances of $800,000 in Accounts Receivable and $55,000 in Allowance for Doubtful Accounts. On January 2, 2021, the company learns that certain customer accounts are not collectible, so management authorizes a write-off of these accounts totaling $10,000. A. Show how the company would have reported its receivable accounts on December 31, 2020. As of that date, what amount did Extreme Fitness expect to collect? (2 points available) B. Prepare the journal entry tp write-off the accounts on January 2, 2021. (2 points available)