1. Below are pre-adjusted balances for Snorlax Corp. as of 12-31-19:
   1. Accounts Receivable: $100,000 (debit)
   2. Allowance for Bad Debts: $12,000 (debit)

On 12-31-19, Snorlax applies the Percentage of Receivables method and estimates that 15% of their receivables will be uncollectible. 2019 write-offs (recorded prior to 12-31-19) totaled $20,000.

1. What will Snorlax report as Accounts Receivable, net on their 2019 balance sheet? To receive any credit, you must show your work.

2. What will Snorlax report as Bad Debt Expense on their 2019 income statement? To receive any credit, you must show your work.

2. Suppose that Snorlaxs average collection period increased from 45 days in 2018 to 60 days in 2019.

1. Provide an example of how Snorlaxs credit policies could contribute to this increase.

2. Provide an example of how earnings manipulation could contribute to this increase.