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Super confused on this one! The Dubious Company operates in an industry where all sales are made on account. The company has experienced bad debt
Super confused on this one!
The Dubious Company operates in an industry where all sales are made on account. The company has experienced bad debt losses of 1.20% of credit sales in prior periods. Presented below is the company's forecast of sales and expenses over the next three years Year 1 Year 2 Year 3 382,000 $ 381,000 Unknown 339,750 Unknown Sales Revenue $ 376,000 Bad Debt Other Expense Net Income Unknown 335,000 Unknown Unknown 339,000 Unknown Expense Required: a. Calculate Bad Debt Expense and net income for each of the three years, assuming uncollectible accounts are estimated as 1.20% of sales Year 1 Year 2 Year 3 Bad Debt Expense Net IncomeStep by Step Solution
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