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Year 3 The Dublous Company operates in an Industry where all sales are made on account. The company has experienced bad debt losses of 1.40%

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Year 3 The Dublous Company operates in an Industry where all sales are made on account. The company has experienced bad debt losses of 1.40% 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 Sales Revenue $385,000 $ 391,000 $ 390,000 Bad Debt Expense Unknown Other Expenses 333,250 Net Income Unknown Required: a. Calculate Bad Debt Expense and net income for each of the three years, assuming uncollectible accounts are estimated as 140% of sales b. Assume that the company changes its estimate of uncollectible credit sales to 1.40% in Year 1, 2.40% in Year 2 and 1.90% in Year 3. Calculate the Bad Debt Expense and net income for each of the three years under this alternative scenario Unknown 338.000 Unknown 339,000 Unknown Unknown Complete this question by entering your answers in the tabs below. Year 3 Required A Required Calculate Bad Debt Expense and net income for each of the three years, assuming uncollectible accounts are estimated as 1.40% of sales Year 1 Year 2 Bad Debt Expense Net Income Required B The Dubious Company operates in an Industry where all sales are made on account. The company has experienced bad debt losses of 1.40% 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 Revenge $ 385,000 $ 391,000 $ 390,000 Bad Debt Expense Unknown Unknown Unknown Other Expenses 338,000 339,000 333,750 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 1.40% of sales. b. Assume that the company changes its estimate of uncollectible credit sales to 1.40% in Year 1, 2.40% In Year 2 and 1.90% in Year 3. Calculate the Bad Debt Expense and net income for each of the three years under this alternative scenario Complete this question by entering your answers in the tabs below. Required A Required B Assume that the company changes its estimate of uncollectible credit sales to 1.40% in Year 1, 2.40% in Year 2 and 1.90% 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 Not income

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