Business, 31.03.2020 00:46 ilovebeanieboos

The Dubious Company operates in an industry where all sales are made on account. The company has experienced bad debt losses of 1.00% 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 $ 370,000 $ 376,000 $ 375,000 Bad Debt Expense Unknown Unknown Unknown Other Expenses 338,000 335,000 341,750 Net Income Unknown Unknown Unknown Required: Calculate Bad Debt Expense and net income for each of the three years, assuming uncollectible accounts are estimated as 1.00% of sales. Assume that the company changes its estimate of uncollectible credit sales to 1.00% in Year 1, 2.00% in Year 2 and 1.50% in Year 3. Calculate the Bad Debt Expense and net income for each of the three years under this alternative scenario.

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The Dubious Company operates in an industry where all sales are made on account. The company has exp...

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