Ch. 09 Quiz B Compare Two Mathods of Accounting for Uncollectible Receivables Call Systems Company, e telephone service and supply company, has just completed its fourth year of operations. The dum we-finthod of recording bad debt expense has been used during the entire period. Because of substantial increases in volume and the amount of uncollectible accounts, the company is considering changing to the allowance method Informati requested as to the effect that an anuel provision of 1% of sales would have had on the amount of bed debt expense repo for each of the past four years. It is also considered desirable to knew what the balance of Allowance for Doubeul Accounts have been at the end of each year The folowing data have been obtained from the accounts Year of Origin of Accounts Receivable Written off as Uncollec Uncollectible Accounts Year Sales Written off 1st $1,150,000 $1,050 1st $1,050 2nd 3rd 4th Ind 1,890,000 3,200 1,500 $1,700 3rd 2,660,000 11,550 3,350 2,650 $5,550 3.350,000 16,400 3,750 5,400 $7,050 Required 1. Assemble the desired data. Er a decrease in the amount of expense as a negative number and all other amounts positive number Call Systems Company Bad Debt Expense Increase Balance Expense Expense (Decrease) of Allowance Account Actually Based on Amount Year Reported Estimate of Expense End of Year 2nd with shooting during 729