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Compare Two Methods of Accounting for Uncollectible Receivables Call Systems Company, a telephone service and supply company, has just completed its fourth year of operations. The direct write-off method 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 % of sales would have had on the amount 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: Year of Origin of Accounts Receivable Written Off as Uncollectible Year Sales Uncollectible Accounts Written Off 1st 2nd 3rd 4th 1st $1,220,000 $1,100 $1,100 2nd 1,770,000 3,000 1,400 $1,600 3rd 2,550,000 11,100 3,200 2,550 $5,350 4th 3,260,000 15,950 3,650 5,400 $6,900 Required: 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 Year Expense Actually Reported Expense Based on Estimate Increase (Decrease) in Amount of Expense Balance of Allowance Account, End of Year 1st $fill in the blank df8575fc9030fbe_1 1,100 $fill in the blank df8575fc9030fbe_2 $fill in the blank df8575fc9030fbe_3 $fill in the blank df8575fc9030fbe_4 2nd fill in the blank df8575fc9030fbe_5 3,000 fill in the blank df8575fc9030fbe_6 fill in the blank df8575fc9030fbe_7 fill in the blank df8575fc9030fbe_8 3rd fill in the blank df8575fc9030fbe_9 11,100.00 fill in the blank df8575fc9030fbe_10 fill in the blank df8575fc9030fbe_11 fill in the blank df8575fc9030fbe_12 4th fill in the blank df8575fc9030fbe_13 15,950.00 fill in the blank df8575fc9030fbe_14 fill in the blank df8575fc9030fbe_15 fill in the blank df8575fc9030fbe_16

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