Calculate bad debt expense and net income for each

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Question

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

YEAR 1:$382,000 YEAR 2:$388,000 YEAR 3:$387,000

Bad Debt Expense

YEAR 1:Unknown YEAR 2:Unknown YEAR 3:UnknowN

Other Expenses

YEAR 1:333,000 YEAR 2:339,000 YEAR 3:333,750

Net Income

YEAR 1:Unknown YEAR 2:Unknown YEAR 3:Unknown

Calculate Bad Debt Expense and net income for each of the three years, assuming uncollectible accounts are estimated as 1.60% of sales.

Reference no: EM132386223

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