Schedule II INCOMNET, INC. AND SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS DECEMBER 31, 1995 AND 1994 Column A Column B Column C Column D Column E ----------- ----------- -------------- ------------ ---------- Additions ----------- (2) Balance at Charged to Charged to (1) Balance beginning costs and other accounts Deductions at end Classification of period expenses - describe - describe of period - -------------------- ----------- ----------- -------------- ------------ ---------- Allowance for doubtful accounts: December 31, 1994 $ 3,263,659 $ 4,576,237 -- $ 4,309,679 $3,530,217 December 31, 1995 $ 3,530,217 $ 7,899,168 -- $ 7,842,435 $3,586,950 <FN> (1) Represents write-offs of specific balances determined to be uncollectible. (2) Balance at December 31, 1995 includes $487,678 of other allowances, such as reserves for marketable securities, inventory and notes receivable. 60