When forecasting its finances for the year ahead, Mega Corporation estimates that it will be unable to collect debts equal to 7% of accounts receivables. In reality, the firm's bad debts are closer to 1.75% of accounts receivable. As a result, Mega's estimated assets and net income will be much higher than its actual numbers. O Mega's estimated assets and net income will be much lower than its actual numbers. Mega's estimated assets and expenses will be much higher than its actual numbers. Mega's estimated assets and expenses will be much lower than its actual numbers.