You are the controller of a restaurant supply company. You have historically used the Percentage of Receivables method to estimate bad debt. You use 5% as your reserve rate.

You have very good relationships with your customers and haven't had a huge issue with bad debt in the past. However, since the Covid-19 pandemic, you have noticed that many customers are taking longer to pay or have stopped paying altogether.

Question: Given the uncertainty around the pandemic and your customers' (restaurants) ability to remain open, what, if any, adjustments will you make to your bad debt policy? Why?