Content CengageNOWv2 Online tead + Maps 3 Translate 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 method of recording bad debt expense has been used during the entire period. Because of substantial increases in sales volume and the amount of uncollectible accounts, the company is considering changing to the allowance method. Information is requested as to the effect that an annual 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 each year. The following data have been obtained from the accounts: Year of Origin of Accounts Receivable Written Off as Uncollectible Uncollectible Accounts Written Off Year Sales 4th 2nd 1st 3rd 1 1st $1,390,000 $1,250 $1,250 2nd 1,840,000 3,150 1,500 $1,650 3rd 2,780,000 12,100 3,500 2,800 $5,800 $7,250 3,430,000 4th 5,700 3,850 16,800 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 Actually Balance of Allowance Account, End Increase (Decrease) in Amount of Expense Based on Voar Previous Next Check My Work 1 more Check My Work uses remaining. 1:49 PM 10/23/2020 o ents Home Content CengagieNOWV2 Online tesc + v2.cengagenow.com YouTube Maps 1 Translate Go Year of Origin of Accounts Receivable Written off as Uncollectible Go Year Sales Uncollectible Accounts Written off 1st 2nd 3rd 4th NKSHEET 1 st $1,390,000 $1,250 $1,250 o 2nd 1,840,000 3,150 1,500 $1,650 3rd 2,780,000 12,100 3,500 2,800 $5,800 4th -3,130,000 16,800 3,850 5,700 $7,250 Required: IKSHEET 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 WKSHEET Year Expense Actually Reported 1.250 Expense Based on Estimate Balance of Allowance Account, End of Year Increase (Decrease) in Amount of Expense 1st KSHEET 2nd 3,150 3rd 12.100 4th 16,800 Center Previous Next Check 3 Work Omore Check My Work uses remaining, ems 1:50 PM 10/23/2020 ? ADD o search