2. On December 31, 2017 and 2018 Deutsche Telecom AG had net trade receivables in the amount of 9000 million and 12,000 million, respectively. The following proportion of the receivables was past due on the reporting date. (Marks: 6) Not past due on the reporting date Past due on the reporting date Total 2017 (30%), 2,700 (70%), 6,300 (100%), 9,000 2018 (30%) 3,600 (70%) 8,400 (100%) 12,000 The changes in Deutsche Telecom's allowance for doubtful receivables were as follows: Item 2017 2018 Allowance on January 1 1,600 1,680 Additions (allowance recognized as expense) 780 775 Allowance on December 31 1,680 1,720 Assume that Deutsche Telecom's statutory tax rate was 30.7 percent in 2017 and 2018. Further assume that an analyst wishes to recognize an additional allowance for 25 percent of the receivables that are past due on the reporting date. a) What adjustments should the analyst make to Deutsche Telecom's balance sheet at the end of 2017? b) What adjustments should the analyst make to deutsche Telecom's 2018 Income statement