Problem 3 Crimson Co., a manufacturer, operates in one geographical region and has a large number of small customers. The company uses a provision matrix based on its historical observed default rates, adjusted to reflect current conditions and forward-looking estimates. At every reporting date, it analyzes changes in the forward-looking estimates and adjusts the historical observed default rates. Crimson estimated the following provision matrix on December 31, 2020: Page 7 of 11 Balance Current 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due More than 90 days past due Estimated default rate 0.15% 0.8% 1.8% 3.3% 5.3% P15,000,000 7,500,000 4,000,000 2,500,000 1,000,000 Because of a deterioration in general economic conditions, Crimson revised its forward-looking estimates on December 31, 2021. Balance Current 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due More than 90 days past due Estimated default rate 0.25% 0.9% 1.9% 3.5% 5.5% P16,000,000 8,000,000 5,000,000 3,500,000 1,500,000 7. How much is the net realizable value of Crimson's accounts receivable on December 31, 2020? 8. How much is the net realizable value of Crimson's accounts receivable on December 31, 2021? 9. How much is the doubtful accounts expense in 2021