Dubious Ltd. is getting ready to publish their annual financial statements. In estimating, bad debt expense, Mr. Dodgy, the newly appointed controller of Dubious, is deciding between the Income Statement method (percentage of sates) and the Balance Sheet method (percentage of gross accounts receivables). As Mr. Dodgy's bonus is tied to the net income, his decision lies upon which method produces a higher net income. Mr. Dodgy's accountant. Ms. Truthful, provides the following information: Assume that 1% of credit sales are typically not collectible. If the income statement method is used, what are the reported (i) had debt expense and (ii) net accounts receivable