1. Assemble the desired data, using the following column headings:

	Bad Debt Expense
Year	Expense Actually Reported	Expense Based on Estimate	Increase (Decrease) in Amount of Expense	Balance of Allowance Account, End of Year
1	$	$	$	$
2	$	$	$	$
3	$	$	$	$
4	$	$	$	$

2. Experience during the first four years of operations indicated that the receivables were either collected within two years or had to be written off as uncollectible. Does the estimate of % of sales appear to be reasonably close to the actual experience with uncollectible accounts originating during the first two years? ________________

Note: This is the completed question. There is nothing more mentioned apart from the above information.

Compare Two Methods of Accounting for Uncollectible Receivables Cyber Space Company, which operates a chain of 65 electronics supply stores, has just completed its fourth year of operations. The direct write-off method of recording bad debt expense has been used during the entire period. Because of substantial increases in sales volume and the amount of uncollectible accounts, the firm is considering changing to the allowance method. Information is requested as to the effect that an annual provision of 7% of sales would have had on the amount of bad debt expense reported for each of the past four years. It is also considered desirable to know what the balance of Allowance for Doubtful Accounts would have been at the end of each year. The following data have been obtained from the accounts: Year of Origin of Accounts Receivable Written Off as Uncollectible Uncollectible Accounts Written Off Year Sales - 1 2 3 4 $2,300,000 $5,000 $5,000 9,000 4,000 $5,000 4,750,000 9,000,000 23,000 2,000 12,000 $9,000 9,600,000 37,500 5,500 $17,500 Instructions