CS-1 LO 11-1, 3, 6, 8 Softbed Hotel (Softbed) owns and manages a large hotel on the east coast. The hotel is close to a few popular tourist attractions and is usually fully booked in the summer. Business is relatively slower in other seasons, when the hotel gains most of its revenues from clients who organize events such as trade shows and conferences. The hotel has established a credit policy. For individual guests, Softbed requires a cash deposit or credit card up front. For large groups of guests and corporate clients, Softbed extends credit selectively, based on the amount of revenue they will generate for the hotel and on their credit information obtained from a reliable independent source. For the clients to whom Softbed decides to extend credit, the term is n/30. Detailed examination of the accounts receivable aging report reveals that, because Softbed completes credit checks before extending credit, there are oniy rare cases where customers are unable to pay. However, bill dispute is the cause of most long-outstanding accounts receivable balances. The billing process is complicated because guests have multiple purchase points (their rooms, restaurants, business center, spa and souvenit shop). Hotel guests can buy products and services from any of the purchase points and ask for the cost: to be billed to their rooms. Sometimes billing mistakes arise due to wrong room numbers being recorded or the purchase information for each customer not being compiled properly from different purchase points. Also, customers often make lastminute changes to their room or other arrangements booked prior to their arrival. These changes are recorded manualify before being transferred to softbed's centralized accounts receivable department. Sometimes these changes are improperly recorded or transferred, resulting in incorrect invoices being billed to customers. Once customers dispute their bills, the hotel starts an investigation to validate the claims. The investigation involves checking internal records and asking various hotel staff about what actualiy happened with a particular customer. Unfortunately, by the time the investigation gets started, the hotel staff have often forgotten details. The customers usually refuse to pay, or pay only partially, until the disputes involving their bills are resolved, resulting in long-outstanding accounts receivable. Required a) To account for bad debt, Softbed estimates that 3% of its gross accounts receivable balance will become uncollectible. Use the information provided in the table below to calculate allowance for doubtful accounts balances for 2021 to 2023, and the days' sales outstanding (nearest whole day) and accounts receivable turnover (two decimal places) for the years 2022 and 2023. Compare the results of ratio calculations and comment on whether the company's performance has improved or weakened