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Exam II A Saved Help Save & Exit Submit 1 As the management accountant for the Tyson Company you have been asked to construct a
Exam II A Saved Help Save & Exit Submit 1 As the management accountant for the Tyson Company you have been asked to construct a financial planning model for collection of accounts receivable and then to perform a what-if analysis in terms of the assumption regarding estimated uncollectible accounts. You are provided with the following information: Collection Pattern for Credit Sales: 70% of the company's credit sales are collected in the month of sale, 25% in the month following the month of sale, and 5% are uncollectible. 02:49:39 Credit Sales. January 2019, $144,000; February 2019, $151,000; March 2019, $114,500. Required: 1. Prepare an estimate of bad debts for each of the three months, January through March, under the following assumptions regarding the rate of uncollectible accounts: 1%, 3%, 5% (base case), and 8%. Estimated Bad Debts Expense January February March Assumed Rate of B/D Expense: 1% 3% 5% 8%
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