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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 Accounts Receivable (gross) Allowance for Doubtful Accounts Accounts Receivable, Net Year 5 $110,000 (4,400) 105,600 Year 4 $70,000 (5,600) 64,400 Year 3 $50,000 (4,000) 46,000 Other Information Gathered Net Sales Revenue Accounts Receivable Write-offs Bad Debt Expense Sales Discounts (3/10, n/30) $760,000 7,900 7,600 4,000 $720,000 7,100 10,800 10,000 $590,000 7,100 8,850 6,000 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-a. Indicate (yes or no) whether you should direct your internal audit staff to investigate EB's receivables management practices more closely. Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Reg 2B Req Req 3B Req 4A Req 4B Req 5A 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. Year 5 Year 4 Year 3 Proportion of Gross Accounts Receivables Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req 2B Req Req 3B Req 4A Req 4B Req 5A IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII Which year does not align with the other two? IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII Year 5 Year 4 OYear 3 Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req 2B Req 3A Req 3B Req 4A Req 4B Req 5A For each of the years, calculate the proportion of Net Sales Revenue that Bad Debt Expense represents. (Round your answers to 1 decimal place.) Year 5 Year 4 Year 3 Proportion of Net Sales Revenue 1% Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req 2B Req Req 3B Req 4A Req 4B Req 5A Which year does not align with the other two? Year 5 Year 4 OYear 3 Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req 2B Req Req 3B Req 4A Req 4B Req 5A Did customers take greater (or lesser) advantage of sales discounts in Year 5 than in Year 4 and Year 3? O Greater O Lesser Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req 2B Req Req 3B Req 4A Req 4B Req 5A Does this indicate customers were more (or less) likely to promptly pay their balances in Year 5 as compared to prior years? More OLess Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req 2B Req Req 3B Req 4A Req 4B Req 5A Calculate the average days to collect in Year 5 and Year 4. (Use 365 days in a year. Round your intermediate calculations to 1 decimal place.) Year 5 Year 4 days Average days to collect days Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req 2B Req Req 3B Req 4A Req 4B Req 5A Does this measure indicate customers paid their balances faster (or slower) in Year 5 as compared to Year 4? Faster Slower er Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2A Req 2B Req Req 3B Req 4A Req 4B Req 5A Indicate (yes or no) whether you should direct your internal audit staff to investigate EB's receivables management practices more closely. OYes ONO

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