Auditing: Accounting issue

Analyze the following issue:

Q) Adequacy of the Allowance for Doubtful Account (AFDA) as at December 31, 2019.

The allowance for doubtful accounts provides for retailers and subscribers. La Belle calculates the allowance based upon historical information. No allowance is made for advertising receivables since most of Belie's adveltisers are large and well-known companies. This is consistent with prior years