Chapter 8 Receivables 417 Year of Origin of Accounts Receivable Written Off as Uncollectible Uncollectible Accounts Written Off 4,500 9,600 12,800 16,550 Year Sales $900,000 1,250,000 1,500,000 2,200,000 $4,500 3,000 $6,600 1,000 3,700 $8,100 1,500 4,300 $10,750 Instructions 1. Assemble the desired data, using the following column headings: Bad Debt Expense Increase Decrease) in Amount of Expense Expense Based on Balance of Allowance Account, Expense Actually Reported End of Year Year Estimate Experience during the first four years of operations indicated that the receivables be written off as uncollectible. Does the th uncol- were either collected within two years or had to estimate of 1% of sales appear to be reasonably close to the actual experience wi ectible accounts originating during the first two years? Explairn