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
Sales Revenue	$ 377,000	$ 383,000	$ 382,000
Bad Debt Expense	Unknown	Unknown	Unknown
Other Expenses	331,000	334,000	337,750
Net Income	Unknown	Unknown	Unknown

Required:

Calculate Bad Debt Expense and net income for each of the three years, assuming uncollectible accounts are estimated as 1.20% of sales.

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 this alternative scenario.