LO 1 E16-44. Similar to audits of for-profit entities in which the adequacy of the allowance for doubtful accounts associated with accounts receivable must be evaluated, audits of government and nonprofit entities require the evaluation of receivables and the related allowance accounts. The following represents the aging of taxes receivable for McKenzie Health Foundation for the historical years ended June 30, 2020, 2019,2018, 2017 and 2016. Contributions receivable vary significantly by year; however, contribution revenue has been fairly stable over the five-year period. Fiscal Year-End 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 Total contributions receivable $ 1,006,000 $ 1,273,000 $ 931,000 $ 1,874,000 $ 596,000 $ 465,000 Allowance for uncollectible contributions 30,180 38,190 27,930 65,590 20,860 18,600 Total contributions revenue 21,123,000 22,064,100 20.099,500 22,117,200 21,978,800 21,654,000 Aging of contributions receivable 0-30 days 520.000 376,000 436,000 1,474,000 596,000 435,000 31-60 days 26,000 426,000 290,000 400,000 30,000 61-90 days 410,000 471,000 205,000 >90 days. 50.000 $ 1,006,000 S 1.273,000 S 931,000 S 1.874,000 $596,000 $ 465,000 Required: 1. Analyze the aging of contributions receivable and the allowance for uncollectible contributions. Your analysis should present percentages within the categories of the aging of contributions receiv- able. In particular, you should note whether percentage of older receivable amounts has changed over the analysis period 2. Comment on the adequacy of the allowance for uncollectible contributions. 3. Would your approach to determining the allowance for uncollectible contributions change if you were making an analogous analysis in a for-profit entity? LO 1 E16-44. Similar to audits of for-profit entities in which the adequacy of the allowance for doubtful accounts associated with accounts receivable must be evaluated, audits of government and nonprofit entities require the evaluation of receivables and the related allowance accounts. The following represents the aging of taxes receivable for McKenzie Health Foundation for the historical years ended June 30, 2020, 2019,2018, 2017 and 2016. Contributions receivable vary significantly by year; however, contribution revenue has been fairly stable over the five-year period. Fiscal Year-End 6/30/2020 6/30/2019 6/30/2018 6/30/2017 6/30/2016 6/30/2015 Total contributions receivable $ 1,006,000 $ 1,273,000 $ 931,000 $ 1,874,000 $ 596,000 $ 465,000 Allowance for uncollectible contributions 30,180 38,190 27,930 65,590 20,860 18,600 Total contributions revenue 21,123,000 22,064,100 20.099,500 22,117,200 21,978,800 21,654,000 Aging of contributions receivable 0-30 days 520.000 376,000 436,000 1,474,000 596,000 435,000 31-60 days 26,000 426,000 290,000 400,000 30,000 61-90 days 410,000 471,000 205,000 >90 days. 50.000 $ 1,006,000 S 1.273,000 S 931,000 S 1.874,000 $596,000 $ 465,000 Required: 1. Analyze the aging of contributions receivable and the allowance for uncollectible contributions. Your analysis should present percentages within the categories of the aging of contributions receiv- able. In particular, you should note whether percentage of older receivable amounts has changed over the analysis period 2. Comment on the adequacy of the allowance for uncollectible contributions. 3. Would your approach to determining the allowance for uncollectible contributions change if you were making an analogous analysis in a for-profit entity