A?uditing and Assurance Services 1st ed Hooks Chapter 10 Problem 10-35 (this is the entire question)

Denice Williams, CPA, is the in-charge auditor for Midwest Health Solutions, Inc. She requested an aging analysis of accounts receivable as of 12/31/11, the company's year end. Following is the information she received. The controller for Midwest said that the same percentages have been used throughout his tenure with the organization (approximately 10 years). He also indicates that the current balance in the allowance for uncollectible accounts is $190,000, which is adequate in light of successful collection efforts for the 61-90 day and the over-90-day categories. Explain why it is important for the auditor to address the adequacy of the allowance for uncollectible accounts. What procedures should Denice apply to determine whether the allowance is adequate? Show an example of an analysis estimate that she might prepare, and discuss how you would use this to convince the controller that an adjustment is necessary