Following your analysis of the information in Schedules A-D, assume that you met with RedPacks Credit Manager, Katie Henson, to ask her a number of questions related to specific customer accounts in the Accounts Receivable Aged Trial Balance. A transcript of your interview notes is provided as Schedule E. Use the information provided in Schedules A-E to address the following question:

2c

Based on the information, develop an estimate of the account balance for the allowance for bad debts and compare your expectation to the clients estimate summarized in Schedule B for the allowance for bad debts. Does the amount you estimated agree with the clients estimate in Schedule B? If it does not agree, by how much does it differ and is that difference material?