FedEx Data for the year ended December 31, 2023:

Item	Amount
Accounts Receivable	$700,000
Estimated Uncollectible	6%
Sales	$2,500,000
Cost of Goods Sold	$1,500,000
Operating Expenses	$700,000

1. Calculate the allowance for doubtful accounts.
2. Determine the net realizable value of accounts receivable.
3. Discuss how the adjustment for uncollectible accounts affects FedEx’s net income.
4. Explain how the Conservatism Principle affects the reporting of accounts receivable.
5. How should the company record the adjustment for uncollectible accounts?