X + intake Assignment takeAssignment Main.do?invokeretakeAssignmentSessionLocator&inprogress-false x Mystic Magic issued Google Password Required Enter your password for lam.comear arcemal Acco. Close eBook Calculator Print Item Contin Aerospace Electronics reports $569,000 in credit sales for 2018 and $636,500 in 2019. They have a $502,000 accounts receivable balance at the end of 2018, and $604,000 at the end of 2019. Aerospace uses the income statement method to record bad debt estimation at 4% during 2018. To manage earnings more favorably. Aerospace changes bad debt estimation to the balance sheet method at 6% during 2019. A. Determine the bad debt estimation for 2018. B. Determine the bad debt estimation for 2019. C. How does the new total bad debt expense affect net income and net accounts receivable? a. Bad debt expense is lower, net income is higher, and net receivables are higher b. Bad debt expense is lower, net income is higher, and net receivables are lower. c. Bad debt expense is higher, net income is lower, and net receivables are higher. d. Bad debt expense is higher, net income is lower, and net receivables are lower A. The income statement method uses the applicable revenue account to determine the necessary amount. 3. Remember that the balance sheet method uses receivables rather than sales. C. What is the effect of using the income statement approach versus the balance sheet approach? What effect does this have on the uncollectible amounts and how can this change be interpreted concerning the financial position of the company? Check Hy work Previous Next > Email Instructor Save and Edt Submit Assignment for Grading