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Information related to Zaza Company for 2018 is summarized below. Total credit sales $13,00,000 Accounts Receivable at December 31 3,69,000 Bad debts written off 22,150 Instructions: (a) What amount of bad debts expense will Bee Company report if it uses the direct write-off method of accounting for bad debts? Document Preview:

Information related to Zaza Company for 2018 is summarized below.Total credit sales$13,00,000 Accounts Receivable at December 313,69,000Bad debts written off22,150Instructions:(a) What amount of bad debts expense will Bee Company report if it uses the direct write-off method of accounting for bad debts?(b) Assume that Bee Company decides to estimate its bad debts expense to be2%of credit sales. What amount of bad debts expense will Bee record if Allowance for Doubtful Accounts has a credit balance of$3,000  (c) Assume that Bee Company decides to estimate its bad debts expense based on6%of accounts receivable. What amount of bad debts expense will Bee Company record if Allowance for Doubtful Accounts has a credit balance of$4,000 ? (d) Assume the same facts as in (c), except that there is a$2,000 debit balance in Allowance for Doubtful Accounts. What amount of bad debts expense will Bee record? 

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