Estimating Uncoffectible Accommits and Reporting Receivables over Multiple Periodi Weiss Company, which have be not offer cash discounts. Its credit sales for its first three years follow. a. E5-46. (30 minutes) Year 2018 2019 2020 Year 2018 2019 2020 Total Weiss recognizes bad debts expense as 1% of sales. (Hint: This means the allowance account is in creased by 1% of credit sales regardless of any write-offs and unused balances) What does Weinn's 2020 balance sheet report for accounts receivable and the allowance for uncollectible accounts? What total amount of bad debts expense appears on Weiss's income statement for each of the three years? b. Comment on the appropriateness of the 1% rate used to provide for bad debts based on our analysis in part a. Sales Sales $733,000 857,000 945,000 $ 733,000 857,000 945.000 $2.535.000 Bad Debts Expense is: 2018 2019 2020 2018-2020 Collections $716,000 842,000 928,000 Collections Accounts Written Off $ 716,000 842,000 928,000 $2.486.000 $ 7,330 8,570 9,450 $25,350 $5,300 5,800 6,500 Accounts Written Off $5,300 5,800 6,500 $17.600 Accounts Receivable Balance $11,700 20,900 computed as 1% $733,000 computed as 1% x $857,000 computed as 1% x $945,000 computed as 1% x $2,535,000 31,400 Allowance for Uncollectible Accounts is $7,750, computed as $25,350 total provision for uncollectible accounts less $17,600 in total write-offs. b. The 1% rate appears to be too high. A 0.8% rate would have provided $20,230, which still exceeds the $17,600 total write-off by $5,070. Moreover, this smaller allowance seems large enough to provide an adequate margin for future write-offs. Ea