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Compare Two Methods of Accounting for Uncollectible Receivabies Call Systems Company, a telephone service and supply company, has just completed its fourth year of operations. The direct write-off methiod of recording bad debt expense has been used during the entire period. Because of substantial increases in sales volume and the amount of uncollectible accounts, the company is considering changing to the allowance method. Information is requested as to the effect that an annual provision of 1/2% of sales would have had on the amounk of bad debt expense reported for each of the past four years. It is also considered desirable to know what the balance of Allowance for Doubtful Accounts would have been at the end of each year. The following data have been obtained from the accounts: 1. Assemble the desired dota. Enter a decrease in the amount of expense as a negative number and all other-amounts as positive numbers. Call systems Company Bad Debt Expense