At a January 2019 meeting, the president of the "Hook the Crook Company announced that the credit evaluation department was being disbanded because it had restricted the company's growth. The sales staff would now make credit decisions. By the end of the year, Hook the Crook had generated significant gains in sales and the president was very pleased. The accounting department provided the following data: Sales (all are on credit) Cost Of Goods Sold Accounts Receivable Allowance for bad debt, 12/31 2019 $24,000,000 21,000,000 13,000,000 2018 $8.000.000 7,000,000 1.000.000 30.000 The $13,000,000 receivables balance was aged as follows: Age of receivable Under 31 days 31-60 days 61-90 days Over 90 days Amount $4,000,000 $3,500,000 $3,000,000 $2,500,000 Percentage expected to be collected 95% 90% 75% 50% $30,000 was written off during 2019, and the remaining balance of accounts receivable (from December 31, 2018) was collected. No accounts were written off related to 2019 credit sales. Required: a. Estimate the amount of uncollectible accounts as of December 31, 2019, and compute the bad debt expense for 2019. Record the transaction related to the bad debt expense. b. Why should a company record a bad debt expense during the current year, when it is going to realize a specific account is uncollectible only in the future (say next year)? Compute the amount the company expects to collect (also known as net-realizable-value) as a percentage of the respective year-end receivable balances, at the end of 2019 and 2018. d. Assume the increase in sales was due only to the change in credit policy. Was the president's decision justifiable