Accounts Receivable Aging Analysis Richard Derick has asked you to review the accounts receivable aging analysis and the allowance for doubtful accounts and to recommend any audit adjustments or reclassifications you consider necessary. Shelly Ross had prepared the aging analysis and the allowance for doubtful accounts document before being temporarily transferred to the Joplin Mills audit. She should be back early next week, but Derick would like to “wrap up” accounts receivable this week. Based on the aging analysis prepared by Ross, you have decided to confirm all large accounts and a sampling of the smaller accounts, using positive confirmations. Requirements 1. Retrieve the file labeled “20X9_ar.xlsx” Locate the following documentation in this file: WP 3—Accounts and notes receivable—trade WP 3.A—Accounts receivable aging analysis WP 3.C—Allowance for uncollectible accounts Scroll to WP 3.A, “Accounts Receivable Aging Analysis.” a. What proportion of the total dollar amount of accounts receivable have you included in your confirmation requests? b. What procedures should you apply in the event of no reply to a request for positive confirmation? c. What is the purpose of analyzing subsequent collections? 2. Based on your analysis of subsequent collections and the results of the confirmation process, are you satisfied that you have sufficient appropriate evidence to evaluate the existence and valuation assertions? 3. Draft the suggested Reclassification Entry A. 4. Scroll to WP 3.C, “Allowance for Uncollectible Accounts.” a. What type of correspondence would you examine to satisfy yourself as to the accounts receivable write-offs? b. Draft the suggested Audit Adjustment 2. Are you satisfied that the balance in the allowance is adequate after your recommended adjustment? c. Scroll to WP 3, “Accounts and Notes Receivable—Trade” (lead schedule). Post Reclassification Entry A and Audit Adjustment 2 to the appropriate locations in the lead schedule.