Newton Company is looking to calculate the amount of bad debt expense for the current year. The management is considering changing from using the percentage of revenue methodology to the gaining methodology. Currently, there is a positive (credit) balance in the allowance for uncollectible accounts of $5,500. During the current year, sales revenue totaled $2,400,000. Historically, the company has reserved 2.5% of revenue as uncollectible accounts. Their aging of accounts receivable shows the following: Current 31-60 days 61-90 days 91-120 days 55,000 Over 120 days 15,000 Total 800,000 90,000 Total Estimated % Uncollectible 460,000 180,000 1.5% 2% 5% 15% Required: 1. Calculate the amount of uncollectible accounts expense for the current year using the percentage of revenue methodology Calculate the amount of uncollectible accounts expense for the current year using the aging methodology 2. 3. Which methodology is acceptable under U.S. Generally Accepted Accounting Principles