Subject :- accounting Year Sales1st $1,100,0002nd 1,670,0003rd 2,660,0004th 3,130,000Required:YearWritten Off1st2nd3rd4th$1,0002,85011,55015,350Expense ActuallyReported1st$1,0001,3503,3502ndExpense Based onEstimate$1,5002,6503,5501. Assemble the desired data. Enter a decrease in the amount of expense as a negative number and all other amounts as positive numbers.Call Systems CompanyBad Debt Expense3rd$5,5505,200CDNIncrease (Decrease) in Amount ofExpense4th$6,600Balance of Allowance Account, End ofYear2. Experience during the first four years of operations indicated that the receivables were either collected within two years or had to be written off asuncollectible. Does the estimate of %% of sales appear to be reasonably close to the actual experience with uncollectible accounts originating during the first twoyears? Compare Two Methods of Accounting for Uncollectible ReceivablesCall Systems Company, a telephone service and supply company, has just completed its fourth year of operations. The direct write-off method of recording baddebt expense has been used during the entire period. Because of substantial increases in sales volume and the amount of uncollectible accounts, the company isconsidering changing to the allowance method. Information is requested as to the effect that an annual provision of 12% of sales would have had on the amount ofbad 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 havebeen at the end of each year. The following data have been obtained from the accounts:Year of Origin of Accounts Receivable Written Off as UncollectibleYear Sales1st $1,100,0002nd 1,670,0003rd 2,660,0004th 3,130,000Required:Year1st2ndUncollectible AccountsWritten OffExpense ActuallyReported00$1,0002,85011,55015,3501st$1,0001,3503,3502ndExpense Based onEstimate$1,5002,6503,5501. Assemble the desired data. Enter a decrease in the amount of expense as a negative number and all other amounts as positive numbers.Call Systems CompanyBad Debt Expense3rd$5,5505,2004thIncrease (Decrease) in Amount ofExpense$6,600Balance of Allowance Account, End ofYear

Bad debt expense refers to an expense being recorded as an accounting entry of the receivable amount…

Year Sales 1st $1,100,000 2nd 1,670,000 3rd 2,660,000 4th 3,130,000 Required: Written Off Year $1,000 2,850 11,550 15,350 Expense Actually Reported 1st. $1,000 1,350 3,350 2nd Expense Based on Estimate $1,500 2,650 3,550. 3rd $5,550 5,200 1. Assemble the desired data. 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 4th $6,600 Increase (Decrease) in Amount of Balance of Allowance Account, End of Expense Year