The accountant for Porile Company prepared the following data for sales and losses from uncollectible accounts:

* Losses from uncollectible accounts are the actual losses related to sales of that year (rather than write-offs of that year).
Required:
1. Calculate the average percentage of losses from uncollectible accounts for 2015 through 2018.
2. Assume that the credit sales for 2019 are $1,260,000 and that the weighted average percentage calculated in Requirement 1 is used as an estimate of losses from uncollectible accounts for 2019 credit sales. Determine the bad debt expense for 2019 using the percentage of credit sales method.
3. Do you believe this estimate of bad debt expense is reasonable?
4. How would you estimate 2019 bad debt expense if losses from uncollectible accounts for 2018 were $30,000? What other action would management consider?

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Losses from Uncollectible Accounts* Credit Sales $ 83,000 Year 2015 2016 2017 2018 $13,125 14,840 16,790 16,850 1,083,000 1,189,000