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The Dubious Company operates in an industry where all sales are made on account The company has experienced bad debt losses of 1.10% of credit

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The Dubious Company operates in an industry where all sales are made on account The company has experienced bad debt losses of 1.10% of credit sales in prior periods. Presented below is the company's forecast of sales and expenses over the next three years. Year 3 $ 390,000 Year 1 $ 385,000 $ 391.000 Sales Revenue Bad Debt Unknown Unknown Unknown Expense Other Expenses 335,750 340,000 337,000 Unknown Unknown Unknown Net Income Required: a. Calculate Bad Debt Expense and net income for each of the three years, assuming uncollectible accounts are estimated as 1.10% of sales, Year1 Year 2 Year 3 Bad Debt Expense Net Income C. Assume that the company changes its estimate of uncollectible credit sales to 1.10% in year 1, 2.10% in year 2 and 1.60% in year 3. Calculate the Bad Debt Expense and net income for each of the three years under this alternative scenario. Year 1 Year 2 Year 3 Bad Debt Expense Net Income

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