The Dubious Company operates in an industry where all sales are made on account. The company has experienced bad debt losses of 2.00% 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	$	387,000		$	393,000		$	392,000
Bad Debt Expense		Unknown			Unknown			Unknown
Other Expenses		331,000			339,000			333,750
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 2.00% of sales.

c.	Assume that the company changes its estimate of uncollectible credit sales to 2.00% in year 1, 3.00% in year 2 and 2.50% in year 3. Calculate the Bad Debt Expense and net income for each of the three years under this alternative scenari