Not sure what clarity is needed. It is fairly straight forward. The question revolves around determining whether or not the given estimate is accurate.

Examine the faimess of this amount Accounts Receivable Lead Sheet Accounts receivable Allowance for uncollectible accounts $ This Year 170.456 (21,373 Last Year 161,933 (20,663) Change 5.3% 3.4% $ Other General Ledger Activity $ Change 3.4% Sales Bad debt expense Account write offs Account recoveries Bad debts as a percent of sales This Year $ 1,943,198 $ 23,5135 $ 26,600 $ 3,800 1.21% Last Year 1,878,425 22,729 21,970 313 1.21% 21.1% 1114.1% $ Client policy for Unsollectibk Accounts Super Shears Inc. uses the percent of sales method for accruing uncollectible accounts. The Current policy is to accrue 1.21% of sales as bad debt expense. This percent is reviewed periodically. Client explanation of Accounts Receivable estimates: Super Shears Inc. generally accrues a steady 1.21% across years, even if their write offs are a bit haphazard, with some years showing a surge and some years showing little activity. They continue to accrue a steady amount to smooth out the surges and lulls in write offs. There was a furry of write ofts at the end of the current year due to customers of the new P19 product line being unable to pay. These customers have been put on COD shipping terms Accounts Receivable Azing Schedule: $ 5 Current 30-60 days 61-90 days Over 90 days Total This Year 141,478 6,818 10,227 11,932 170,456 Last Year 136,024 11,335 12,955 Change 4.0% -39.8% -21.1% 637,0% 5.3% 1.619 S 5 161,933 Audit Confirmations: Positive audit confirmations were sent to all over 90-day invoices without exception. Negative audit confirmations were sent to a sample of current through 90day invoices. One customer disputed the amount and the dispute was resolved by Vouching the sales return that accounted for the confirmation difference Required 1. Identify the evidence that supports the estimate. What facts, tests, or balances indicate that management's accrual is reasonable? That is, what evidence supports the accrual? Defend your choices. 2. Identify the evidence that contradicts the estimate. What facts, tests, or balances indicate that the accrual may not be reasonable? That is, what evidence is "disconfirming." indicating that an audit adjustment may be needed? Defend your choices. 3. Identify the irrelevant evidence (neither supports nor contradicts the estimate). What facts, tests, or balances are irrelevant or not helpful in determining the reasonableness of the allowance for uncollectible accounts? Defend your choices. 4. Balance the persuasiveness of the supporting evidence against the persuasiveness of the contradictory evidence. Overall, rate the reasonableness of management's estimate on a scale of 0-10, with 10 = very reasonable and 0 = not reasonable at all. Defend your rating. 5. What other evidence would you gather, if any