the chief accountant for hollywood corporation provides you with the following list of accounts receivable written off in the current year: March 31, MGM Corp. $6,000. June 30, Universal Inc. $10,200. September 30, TriStar Inc. $26,500. December 31, Theaters Corp. $18,220. Hollywood corporation follows the policy of debiting bad debt expense as accounts are written off. The chief accountant maintains that this procedure is appropriate for financial statement purposes because the IRS will not accept other methods for recognizing bad debts. All of hollywood corporation's sales are on a 60-day credit basis. Sales for the current year total $7,600,000. The balance in accounts receivable at year-end is $800,000 and an analysis of customer risk and charge-off experience indicates that 10% of receivables will be uncollectible. (Assume a zero balance in the allowance). Instructions a. Do you agree or disagree with hollywood's policy concerning recognition of bad debt expense? Why or why not? b. By what amount would net income differ if bad debt expense was computed using the percentage-of-receivables approach