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Vanity Ltd is an insurance company that purchases insurance called reinsurance against expected losses...

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Accounting

Vanity Ltd is an insurance company that purchases insurance called reinsurance
against expected losses it insures. In other words, Vanity purchases insurance on the insurance policies that it sells to its customers. Once its insured losses are incurred, Vanity files claims with reinsurers, which are then recorded as an asset, reinsurance recoverable. The following information is taken from Vanity Ltds 2022financial statements: Reinsurance recoverable is presented net of a valuation allowance for uncollectible reinsurance determined based
upon a review of the financial condition of reinsurers and other factors. The valuation allowance for uncollectible
reinsurance is based on an estimate of the reinsurance recoverable balance that will ultimately be unrecoverable due
to reinsurer insolvency, a contractual dispute, or any other reason.
1. How much was owed to Vanity by reinsurers at the end of 2022? Of the amount
owed, how much did Vanity expect to collect?
2. What amount of expense related to the uncollectible reinsurance did Vanity
record in 2022?
3. What percentage of Vanity's reinsurance recoverable was expected to be
uncollectible at the end of 2022?
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