As detailed as possible please

The accounting records of Daffodil Company has the following information available for the year ending December 31, 20X3 DAFFODIL COMPANY SELECTED FINANCIAL INFORMATION FOR YEAR ENDING DECEMBER 31, 20x3 Cash sales Sales on account Accounts Receivable, 1/1/X3 Accounts Receivable, 12/31/X3 Allowance For Doubtful Accounts, 1/1/X3 (normal balance) Accounts written off as uncollectible during 20X3 750,000 575,000 225,000 205,000 1,500 4,200 Management feels that the current estimates used for estimating bad debts are inaccurate. The company is considering the following different alternatives to estimating bad debts. DAFFODIL COMPANY (a) (b) (c) (d) VARIOUS ALTERNATIVES FOR ESTIMATING BAD DEBTEXPENSE Bad debt expense is approximately 0.75% of credit sales. Bad debt expense is approximately 0.40% of total sales Uncollectible accounts will be 1 .80% of the year end accounts receivable balance. An aging of accounts receivable indicates that 60% of the receivables balance would incur a 1.25% loss and the remainder would incur a 6.25% loss