Call systems company, a telephone service and supply company, has just completed its fourth year of operations.

Compare Two Methods of Accounting for Uncollectible Receivables Call Systems Company, a telephone service and supply company, has just completed its fourth year of operations. The direct write -off recording bad debt expense has been used during the entire period. Because of substanti uncollectible accounts, the company is considering changing to the allowance method. provision of %% 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: al increases in sales volume and the amount of Information is requested as to the effect that an annual Year of Origin of Accounts Receivable Written Off as Uncollectible Uncollectible Accounts Written Off Year Sales 1st $1,340,000 2nd 1,880,000 1st 2nd 3rd 4th $1,200 3,200 11,050 15,450 $1,200 1,500 3,200 $1,700 2,550 3,550 3rd 2.540,000 $5,300 5,250 4th 3,150,000 $6,650 Required 1. Assemble the desired data. Enter a decrease in the amount of expense as a negative number and all other amounts as positive numbers Call Systems Company Schedule of Bad Debt Expense Expense Based on Estimate Increase (Decrease) in Amount of Expense Balance of Allowance Account, End of Expense Actually Reported Year 1st