Sanveria Books, a small book publishing company, wrote off the debt of Lalita's Kinder, and Mohan's best Learners, both small private schools, after it determined that the schools were facing serious financial difficulty. No notice of the action was sent to the schools; Sanveria Books simply stopped sending bills. Nearly a year later, Lalita's Kinder was given a large endowment and a government grant. The resulting publicity brought the school to the attention of Sanveria Books, which immediately reinstated the account, and sent a new bill to the school, including interest for the entire time the debt was outstanding. No further action was taken regarding Mohan's best Learners, which was still operational. Sanveria Books employed an accounting intern who made the following entries. In each case, the explanation to the entry is correct. 27 March Cash.... Bad Debt Expense. 1,000 1,000 (Collection of account previously written off as uncollectible under allowance method) 31 March Bad Debt Expense... 600 Allowance for Doubtful Accounts. 600 (To recognize estimated bad debts based on 1% of net sales of $600,000) Required: Would your decision change if Lalita's Kinder had become bankrupt