b. Comment on the use of the one percent rate to provide for credit losses in part a.

Allowance Method Steinbrook Company, which has been in business for three years, makes all of its sales on account and does not offer cash discounts. The firm's credit sales, collections from custom- ers, and write-offs of uncollectible accounts for the three-year period are summarized as follows: Year Sales Collections Accounts Written Off 2015 $751,000 $733,000 864,000 938,000 $5,300 2016 876,000 975,000 6,200 6,500 2017 Required a. If Steinbrook Company used an allowance method of recognizing credit losses and provided for such losses at the rate of one percent of credit sales, what amounts of accounts receivable and the allowance for doubtful accounts should appear on the firm's balance sheet at the end of 2017? What total amount of bad debts expense should appear on the firm's income statement during the three-year period? b. Comment on the use of the one percent rate to provide for credit losses in part a