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P9-2A Information related to Mingenback Company for 2017 is summarized below. Total credit sales $2,500,000...

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Accounting

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P9-2A Information related to Mingenback Company for 2017 is summarized below. Total credit sales $2,500,000 Accounts receivable at December 31 875,000 Bad debts written off 33,000 Instructions (a) What amount of bad debt expense will Mingenback Company report if it uses the direct write-off method of accounting for bad debts? (b) Assume that Mingenback Company estimates its bad debt expense to be 2% of credit sales. What amount of bad debt expense will Mingenback record if it has an Allowance for Doubtful Accounts credit balance of $4,000? (c) Assume that Mingenback Company estimates its bad debt expense based on 6% of accounts receivable. What amount of bad debt expense will Mingenback record if it has an Allowance for Doubtful Accounts credit balance of $3,000? (d) Assume the same facts as in (c), except that there is a $3,000 debit balance in Allowance for Doubtful Accounts. What amount of bad debt expense will Mingenback record? (e) What is the weakness of the direct write-off method of reporting bad debt expense

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