Estimating Uncollectible Accounts and Reporting Receivables over Multiple Periods Weiss Company, which has been in business for three years, makes all of its sales on credit and does not offer cash discounts. Its credit sales, customer collections, and write-offs of uncollectible accounts for its first three years follow. Year Sales 2018 ..... $733,000 2019..... 857,000 2020 ..... 945,000 Collections $716,000 842,000 928,000 Accounts Written Off $5,300 5,800 6,500 a. 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.) a) Fill in the following account details for the Allowance for Uncollectible Accounts Initial Year FY 2018 Subsequent Years FY 2019 FY 2020 $0 (Same as FY2018 ending) (Same as FY2019 ending) Opening Balance Add: Bad-debt expense provision for the year Minus: Total write- off during the year Ending balance b) Fill in following balance sheet and income statement presentation for respective year Balance Sheet 2018 Year END Subsequent Years FY 2019 END FY 2020 END Accounts Receivable (at the end of the year) Minus: Allowance for Uncollectible Accounts Net Accounts Receivable FY 2018 FY 2019 FY 2020 Income Statements Bad Debt Expense FY 2018 FY 2019 FY 2020 Other data Total Cash collected from customers during the year Problem 2: Follow-up The management is reconsidering the 1% policy and would like to calculate the following ratios: 2018 Year END Subsequent Years FY 2019 END FY 2020 END Allowance for Uncollectible Accounts as a percentage of Accounts Receivable at the end of year Bad-debt expense as a percentage of write-offs Ending Allowance as a percentage of Write-off Suppose an aging analysis is conducted on the 2020 ending Accounts Receivable balance which leads to be best estimate of Allowance to be 5,070. Assuming FY2018 and FY2019 figures cannot be changed, what would be the FY2020 bad-debt expense has to be for the ending allowance to be $5,070