Compare two methods of accounting for incollectible recelyables Call Systems Company, a teiepbone service and supply company, has just completed its fourth year of operations. The direct write-off method of recording bad debe expense has been used during the entire period. Because of substantial increases in sales volume and the amount of uncollectible accounts, the company is consldering changing to the allowance method. Information is requested as to the effect that an annual provislon of 1 W of sales would have had on the amount of bad debt expense reported for each of the past four years it is aiso considered desirable to know what the balance of Aliowance for Doubtful Accounts would have been at the end of each year. The following data have been obtained from the accounts 1. Asuemble the desired data, uning the fonlowing calumn nesdings