Compare Two Methods of Accounting for Uncollectible contes Call Systems Companya teohone service and supply company has completed the fourth year of operation. The direct wethod of recording to be sease used on the entire pered Because of substantial increases in sales volume and the amount of uncollectie accounts, the company ordening change to the located Information requested in to the effect than a 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 what the balance of wine or boten have been at the end of each year. The following data have been obtained from the accounts Year of Origin of Accounts Receivable Written Off as Uncollectible Uncollectible Accounts Year Written of 2nd 3rd $1,240,000 $1,100 2nd 1,620,000 2,750 1,300 3rd 2,840,000 12,350 $5.900 4th 3.470,000 17.000 3,000 5,600 Required 1st 11.100 3.600 1. Assemble the desred data inter a decrease in the amount of an anive number and all other as a positive Call Systems Company Bad Debt Expense Increase Balance Expence Expense in amount Decrease) of Allowance Account Actually based on Year Reported Estimate of Expense End of Year 1st 2nd Sed Previous Ned > calor=&inprogresse Chapter 9 Homework Boca Year of Origin of Accounts Receivable written Off Uncollectible Uncollectible Accounts Year Sales written on 1 2nd 3rd 1st $1,240.000 Ath $1.100 51.100 1.620,000 2.750 1.300 $1,450 3rd 2,840,000 12.350 3,600 2,850 $5.900 4th 3,420,000 17.000 3.900 5,800 12.30 Required: 1. Antebe the desired data tnter a decrease in the amount of expense notive number and other sostienne Can Systems Company Bad Debt Expense Increase Balance Expense Expense (Decrease of Allowance Actually based on in Amount Account Year Reported Estimate of Expense End of Year 11 2nd 999 2. Experience during the four years of operations indicated that there were collected within two years or het te wees of Destination reasonably close to the actual experience with the courts originating during the Not