Calculate b a d d e b t a m ounts usin g d ifferent m etho d s. The following information relates to Eason Ltd for 2019: Total credit sales Accounts receivable at 31 December 2019 Bad debts written off $200 000 46 000 2 900 LO8 Require d (a) What amount of bad debts expense will Eason Ltd report if it uses the direct write-off method of accounting for bad debts? (b) Assume that Eason Ltd decides to estimate its bad debts expense based on 5% of accounts receivable. What amount of bad debts expense will the business record if it has an allowance for doubtful debts credit balance of $1600 at 31 December 2018? (c) Assume the same facts as in part (b), except that there is a debit balance of $1150 in allowance for doubtful debts. What amount of bad debts expense will Eason Ltd record? (d) What is the weakness of the direct write-off method of reporting bad debts expense? 30.