Final Exam (Problems) 7 Help Save & Exit Submit The Dubious Company operates in an industry where all sales are made on 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 Net Income Required: Year 1 $376,000 Year 2 $382,000 Year 3 $301,000 Unknown Unknown Unknown 340,750 337,000 333,000 Unknown Unknown Unknown a. Calculate Bad Debt Expense and net income for each of the three years, assuming uncollectible accounts are estimated as 1.60% of sales b. 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, Complete this question by entering your answers in the tabs below. Required A Required B 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 Bad Debt Expense Net Income $ 376,000 $ Year 2 382,000 $ Year 31 381,000 7 Sales Revenue Bad Debt Expense Other Expenses Net Incone Required: Year 1 $376,000 Unknown Unknown Year 2 $382,000 Year 3 $ 381,000 Unknown 337,000 333,000 340,750 Unknown Unknown Unknown Save & Exit Submit a. Calculate Bad Debt Expense and net income for each of the three years, assuming uncollectible accounts are estimated as 1.60% of sales b. 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. 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 1.60% 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. Bad Debt Expense Year 1 Year 2 Year 3 Net Income