3?. Red Shoes Ltd has gone bankrupt and will not pay $10 000 to XYZ. XYZ has accounts receivable of $12 million and an allowance for doubtful debts of $500 000. XYZ does not adjust the accounts for the $10 000 that will not be paid by Red Shoes Ltd. Which of the following statements is true about the balance sheet of XYZ? Select one: a. total assets are overstated b. total assets are understated c. net accounts receivable is correctly' stated cl. none of the above