Bad Debt Expense Assignment
Bad Debt Expense Assignment
The Dubious Company operates in an industry where all sales are made on the account. The company has experienced bad debt losses of 1.60% of credit sales in prior periods. Presented below is the company's forecast of sales and expenses over the next three years. Sales Revenue Bad Debt Expense Other Expenses Year 1 $ 372,000 Unknown 332,000 Year 2 $ 378,000 Unknown 341,000 Year 3 $ 377,000 Unknown 332,750 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 1.60% of sales. Year 1 Year 2 Year 3 Bad Debt Expense Net Income Assume that the company changes its estimate of uncollectible credit sales to 1.60% in year 1, 2.60% in year 2 and 2.10% 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 Net Income. Get Accounting homework help today
