Packet Exercise 6.2 At 12/31/2020 Boynton Corp. reported a balance in Accounts Receivable of $425,000 and a credit balance in the Allowance for Doubtful Accounts of $25,000. The following information relates to 2021 transactions and information: . . Credit sales $500,000 Cash sales of $15,000 Bad debt expense was estimated to be $20,000 for the year Wrote off uncollectible accounts totaling $3,000 Collected $450.000 from credit customers Calculate AR, net at 12/31/20212 (hint: use Taccounts) Accounts Receivable Allowance for D.A. Sales Bad Debt Expense Cash Discussion questions: A. Why should Boynton report Net AR instead of Gross AR on the balance sheet? B. Was the allowance for doubtful accounts balances sufficient to absorb the write-offs recorded during 2021? C. Did the company record enough bad debt expense in 2021? D. How does bad debt expense affect net income? E. Is bad debt a precise number or an estimate. F. Are companies more likely to overestimate or underestimate bad debt expense? Explain. ts