4. Recording the change from the percentage of sales to the percentage of accounts receivable method of calculating bad debt expense: a. Calculate the amount of bad debt expense Frosty Co. would recognize using the percentage of sales method. 13 Assuming that the management team has decided to switch from the percent of accounts receivable method to the percent of sales method for estimating bad debt expense, what correcting entries would need to be made? What would be the net effect of this change in method on net income? What would be the net effect on EPS