The accountant for Porile Company prepared the following

data for #2348

The accountant for Porile Company prepared the following data for

The accountant for Porile Company prepared the following data for sales and losses from
uncollectible accounts:

* Losses from uncollectible accounts are the actual losses related to sales of that year (rather
than write-offs of that year).
Required:
1. Calculate the average percentage of losses from uncollectible accounts for 2015 through
2018.
2. Assume that the credit sales for 2019 are $1,260,000 and that the weighted average
percentage calculated in Requirement 1 is used as an estimate of losses from uncollectible
accounts for 2019 credit sales. Determine the bad debt expense for 2019 using the percentage
of credit sales method.
3. Do you believe this estimate of bad debt expense is reasonable?
4. How would you estimate 2019 bad debt expense if losses from uncollectible accounts for
2018 were $30,000? What other action would management consider?

The accountant for Porile Company prepared the following data for

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