12. At a recent board of directors meeting of Ascot, Inc., one of the directors expressed concern over the Allowance for Doubtful Accounts appearing on the company's balance sheet. "I don't understand this ac. count," he said, "Why don't we just show accounts receivable at the amount we would receive if we sold them to a financial institution and get rid of that allowance account?" Prepare a written response to the director. Include in your response (1) an explanation of why the com- pany has an allowance account, (2) what the balance sheet presentation of accounts receivable is supposed to show, and (3) how the basic principles of accounting relate to the analysis and presentation of accounts receivable. 13. What generally accepted accounting principle is being implemented when a company estimates its poten- tial credit losses from its outstanding accounts receivable? 14. Why is the direct write-off method of accounting for credit losses not generally accepted