Question 8 Not complete Marked out of 5.00 Flag question Allowance Method David Company, which has been in business for three years, makes all of its sales on account and does not offer cash discounts. The firm's credit sales, collections from customers, and write-offs of uncollectible accounts for the three-year period are summarized below: Year Sales Collections Accounts Written Off Year 1 $300,000 $287,000 Year 2 390,000 385,000 Year 3 430,000 407,000 $2,200 3,350 3,650 If David Company had used the allowance method of recognizing credit losses and had provided for such losses at the rate of 1.6 percent of credit sales, what amounts in accounts receivable and the allowance for doubtful accounts would appear on the firm's balance sheet at the end of the third year? What total amount of bad debts expense would have appeared on the firm's income statement during the three year period? $ Balance in Accounts Receivable at year end, Year 3 Allowance for Doubtful Accounts Balance at year end Year 3 Bad Debts Expense 0 0 0

Alowance Method acrowns tar the thece year period are summaniand beitow durine the three year period