WorldBiz operates divisions around the world. Its European divisionEuroBiz (EB)has recently reported the following information to you at WorldBizs 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)	$ 115,000	$ 63,000	$ 43,000
Allowance for Doubtful Accounts	(4,600)	(6,300)	(4,300)
Accounts Receivable, Net	110,400	56,700	38,700

Other Information Gathered	Year 5	Year 4	Year 3
Net Sales Revenue	$ 685,000	$ 585,000	$ 520,000
Accounts Receivable Write-offs	7,200	6,400	6,400
Bad Debt Expense	6,850	8,190	7,280
Sales Discounts (2/10, n/30)	3,300	9,300	5,300

Required:

1. 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.
2. 1-b. Which year does not align with the other two?
3. 2-a. For each of the years, calculate the proportion of Net Sales Revenue that Bad Debt Expense represents.
4. 2-b. Which year does not align with the other two?
5. 3-a. Did customers take greater (or lesser) advantage of sales discounts in Year 5 than in Year 4 and Year 3?
6. 3-b. Does this indicate customers were more (or less) likely to promptly pay their balances in Year 5 as compared to prior years?
7. 4-a. Calculate the average days to collect in Year 5 and Year 4.
8. 4-b. Does this measure indicate customers paid their balances faster (or slower) in Year 5 as compared to Year 4?
9. 5. Indicate (yes or no) whether you should direct your internal audit staff to investigate EBs receivables management practices more closely.