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. a. Calculate bad debt expense and net income for each of the three years, assuming uncollectible accounts are estimated as 1.20% of sales. b. Assume that the company changes its estimate of uncollectible credit sales to 1.20% in Year 1, 2.20% in Year 2, and 1.70% in Year 3. Calculate the bad debt expense and net income for each of the three years under the alternate scenario.

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 Sales Revenue $ 386,000 $ 391,600 Bad Debt Expense Unknown Other Expenses 335.000 342.000 334.750 Net Inco Unknown Year $ 392,000 Unknown Unknown Unknown Unknown Required: Calculate Bad Debt Expense and net income for each of the three years, assuming uncollectible accounts are estimated as 120% of sales b. Assume that the company changes its estimate of uncollectible credit sales to 20% in Year 1, 220% in Year 2 and 170 in Year Calculate the Bad Debt Expense and net income for each of the three years under this alternative scenario. Complete this question by entering your answers in the tabs below. Segred A Dared Calculate Bad Debit Expense and net income for each of the three years, assuming uncollectible accounts antimate Net Income Com Complete this question by entering your answers in the tabs below. Required A Required B Assume that the company changes its estimate of uncollectible credit sales to 1.209 In Year 1, 2.20% in Year 2 and 1.70% de 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