The balances of selected accounts of the Dexter Company on December 31, 2019, are given below: $ 425,000 Accounts Receivable Allowance for Doubtful Accounts (credit) Total Sales Sales Returns and Allowances (total) 2,000 5,025,000 125,000 (Credit sales were $4,300,000. Returns and allowances on these sales were $105,000.) Required: 1. Compute the amount to be charged to Uncollectible Accounts Expense under each of the following different assumptions: a. Uncollectible accounts are estimated to be 0.2 percent of net credit sales. b. Experience has shown that about 3.2 percent of the accounts receivable will prove worthless. 2. Suppose Allowance for Doubtful Accounts has a debit balance of $1,750 instead of a credit balance of $2,000, but all other account balances remain the same. Compute the amount to be charged to Uncollectible Accounts Expense under each assumption in item 1 Analyze: If you were the owner of Dexter Company and wished to maximize profits reported for 2019, which method would you prefer to use? Req la Reg 1b Reg 2a Reg 2b Analyze Uncollectible accounts are estimated to be 0.2 percent of net credit sales. Compute the amount to be charged to Uncollectible accounts. (Round your "Estimated loss rate" to 3 decimal places, i.e. 1.2% should be entered as 0.012.) Credit sales Net credit sales Estimated loss rate Amount to be charged to uncollectible accounts expense Req la Req 1b Reg 2a Reg 2b Analyze Experience has shown that about 3.2 percent of the accounts receivable will prove worthless. Compute the amount to be charged to Uncollectible accounts. Accounts receivable estimated uncollectible Amount to be charged to uncollectible accounts expense Req la Reg 1b Reg 2a Reg 2b Analyze Uncollectible accounts are estimated to be 0.2 percent of net credit sales. Compute the amount to be charged to Uncollectible accounts. (Round your "Estimated loss rate" to 3 decimal places, i.e. 1.2% should be entered as 0.012.) Credit sales Net credit sales Estimated loss rate Amount to be charged to uncollectible accounts expense Req la Req 1b Req 2a Reg 2b Analyze Experience has shown that about 3.2 percent of the accounts receivable will prove worthless. Compute the amount to be charged to Uncollectible accounts. Accounts Receivable estimated uncollectible Amount to be charged to uncollectible accounts expense Complete this question by entering your answers in the tabs below. Req la Req 16 Reg 2a Req 26 Analyze If you were the owner of Dexter Company and wished to maximize profits reported for 2019, which method would you prefer to use? Using the would give highest income this year.