PPR is a manufacturer of medical-grade cleaning products. The company has two main categories of customers: corporate and municipal customers (hospitals and community centres). The company sells all products on credit, and invoices immediately after shipment. Payment is due within 30 days.
The following information was provided regarding accounts written off over the past 5 years:

Required:
You are an analyst in the accounting department for PPR. Prepare a discussion around the bad debt expense and propose whether any changes should be made.

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Percentage 14 12 10 8 4 2 0 LELL 20X3 Year Corporate accounts uncollectible Municipal accounts uncollectible 20X1 20X2 20X4 20X5 Actual bad debt expense