WorldBiz operates divisions around the world. Its European division$$EuroBiz $($EB$)$has recently reported the following information to you at WorldBiz$$s head office. You are trying to decide whether to direct your internal audit staff to investigate more closely.

From the Financial Statement Notes Year $5$ Year $4$ Year $3$

Accounts Receivable $($gross$)$ $ $120,000$ $ $71,000$ $ $51,000$

Allowance for Doubtful Accounts $(6,000)(7,100)(5,100)$

Accounts Receivable, Net $114,00063,90045,900$

Other Information Gathered Year $5$ Year $4$ Year $3$

Net Sales Revenue $ $610,000$ $ $600,000$ $ $600,000$

Accounts Receivable Write$-$offs $8,0007,2007,200$

Bad Debt Expense $6,1009,0009,000$

Sales Discounts $(2/10,$ n$/30)4,10010,1006,100$

Required:

$1-$a$.$ For each of the years, calculate the proportion of gross accounts receivable estimated to be uncollectible as allowed for in the Allowance for Doubtful Accounts.

$1-$b$.$ Which year does not align with the other two?

$2-$a$.$ For each of the years, calculate the proportion of Net Sales Revenue that Bad Debt Expense represents.

$2-$b$.$ Which year does not align with the other two?

$3-$a$.$ Did customers take greater $($or lesser$)$ advantage of sales discounts in Year $5$ than in Year $4$ and Year $3?$

$3-$b$.$ Does this indicate customers were more $($or less$)$ likely to promptly pay their balances in Year $5$ as compared to prior years?

$4-$a$.$ Calculate the average days to collect in Year $5$ and Year $4.$

$4-$b$.$ Does this measure indicate customers paid their balances faster $($or slower$)$ in Year $5$ as compared to Year $4?$

$5.$ Indicate $($yes or no$)$ whether you should direct your internal audit staff to investigate EB$$s receivables management practices more closely.