Information related to Shin Company for 2014 is summarized below.
Total credit sales ............. $920,000
Accounts receivable at December 31 ..... 369,000
Bad debts written off .......... 23,400

Instructions
(a) What amount of bad debt expense will Shin Company report if it uses the direct write-off method of accounting for bad debts?
(b) Assume that Shin Company decides to estimate its bad debt expense to be 3% of credit sales. What amount of bad debt expense will Shin record if Allowance for Doubtful Accounts has a credit balance of $3,000?
(c) Assume that Shin Company decides to estimate its bad debt expense based on 7% of accounts receivable. What amount of bad debt expense will Shin 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 debt expense will Shin record?
(e) What is the weakness of the direct write-off method of reporting bad debt expense?