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rtment Main doinvoker ignmentsessionLocator assignment-take Compare two methods of accounting for uncollectible receivables Schedule of Bad Debt Expense Final Question Instructions Digital Depot company, which

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rtment Main doinvoker ignmentsessionLocator assignment-take Compare two methods of accounting for uncollectible receivables Schedule of Bad Debt Expense Final Question Instructions Digital Depot company, which operates a chain of 40 electronics supply stores, has just completed its fourth year of operations The direct write-off method of recording bad debt expense has been used during the entire period. Because of substantial increases in sales volume and the amount of uncollectible accounts, the firm is considering changing to the allowance method. Information is requested as to the effect that an annual provision of Va% of sales would have had on the amount of bad debt expense reported for each of the past four years. It is also considered desirable to know what the balance of Allowance for Doubtful Accounts would have been at the end of each year. The following data have been obtained from the accounts Years of origin of Accounts Receivable Written off as Uncollectible Sales Uncollectible Accounts Written off (ust) (2nd) (3rd) (4th) Year $18,000 $18,000 1st $12,500,000 30, 200 14,800,000 9,300 $27,000 39,900 18,000,000 $35,000 5,100 12,500 24,000,000 Required: as neaative usina a 1. Assemble the desired data to prepare a schedule of bad debt expense. Enter decreases numbers

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