Do you agree or disagree with this rationale related to how items within accounts receivable could affect liquidity and solvency?

PepsiCo, Inc. identifies net receivables on its balance sheet. It provides supplementary financial information for its balance sheet, which includes identifying the net accounts and notes receivable and defining some of its accounts receivable as trades receivable in The accounts receivable category. (PepsiCo, Inc., 2023) In addition to this classification of accounts, their supplementary financial information includes a breakdown of the allowance for doubtful accounts at the beginning of the year, the cumulative effect of the accounting change, net amounts charged expenses, and deductibles. The total allowance for 2022 was $150 million; if this amount of $150 million were included and listed along with total accounts receivable on the balance sheet, the calculation for current assets and quick ratio, along with other accounts that use accounts receivable as part of its financial ratio would be directly affected, specifically those in the liquidity and solvency categories. (Likos, 2020) This inclusion would affect how a company appears to manage its debts financing, whether long- or short-term. The allowance for doubtful accounts is identifying companies that will probably never pay the credit terms of their contracts, including $150 million of assets that would likely never be received, and, therefore, is not directly contributing to the solvency or liquidity of a companys liabilities.