The Dubious Company operates in an industry where all sales are made on account. The company has experienced bad debt losses of 1.70% 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	$	376,000		$	382,000		$	381,000
Bad Debt Expense		Unknown			Unknown			Unknown
Other Expenses		330,000			337,000			332,750
Net Income		Unknown			Unknown			Unknown

Required a. Calculate Bad Debt Expense and net income for each of the three years, assuming uncollectible accounts are estimated as 1.70% of sales. Year 1 Year 2 Year 3 Bad Debt Expense Net Income c. Assume that the company changes its estimate of uncollectible credit sales to 1.70% in year 1, 2.70% in year 2 and 2.20% 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