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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 1.90% 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 1.90% of credit sales in prior periods. Presented below is the company's forecast of sales and expenses over the next three years. Required: a. Calculate Bad Debt Expense and net income for each of the three years, assuming uncollectible accounts are estimated as 1.90% of sales. b. Assume that the company changes its estimate of uncollectible credit sales to 1.90% in Year 1,2.90\% in Year 2 and 2.40% in Year 3. Calculate the Bad Debt Expense and net income for each of the three years under this alternative scenario

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