The Dubious Company operates in an industry where all sales are made on account. The company has experienced bad debt losses of 1.10% 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			342,000			338,750
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 1.10% of sales.

c.	Assume that the company changes its estimate of uncollectible credit sales to 1.10% in year 1, 2.10% in year 2 and 1.60% in year 3. Calculate the Bad Debt Expense and net income for each of the three years under this alternative scenario.