Nike Inc. Data for the year ended December 31, 2023:

• Accounts receivable: $1,000,000
• Estimated uncollectible accounts: 3%
• Sales: $8,000,000
• Cost of goods sold: $5,000,000
• Operating expenses: $2,000,000
• Calculate the allowance for doubtful accounts.
• Determine the net realizable value of accounts receivable.
• Discuss the impact on Nike's net income if no allowance for doubtful accounts was recorded.
• How should the company record the adjustment for uncollectible accounts?