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	$	381,000			$	387,000			$	386,000
Bad Debt Expense		Unknown				Unknown				Unknown
Other Expenses		336,000				335,000				340,750
Net Income		Unknown				Unknown				Unknown

Required:

1. Calculate Bad Debt Expense and net income for each of the three years, assuming uncollectible accounts are estimated as 1.20% of sales.
2. 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.