complete problem using templated excel spreadsheet.

F G H B C D E P8 2B Compute bad debt amounts Information related to Miracle Company for 2019 is summarized below: Total credit sales $1,000,000 Accounts receivable at December 31 369,000 Bad debts written off 22,150 Instructions: (a) What amount of bad debt expense will Miracle Company report if it uses the direct write-off method of accounting for bad debts? B (b) Assume that Miracle Company decides to estimate its bad debt expense to be 2% of credit sales. What amount of bad debt expense will Miracle record it Allowance for Doubtful Accounts has a credit balance of $3,000? 2 ) Assume that Miracle Company decides to estimate its bad debt expense based on 5% 13 of accounts receivable. What amount of bad debt expense will Miracle Company 4 record it Allowance for Doubtful Accounts has a credit balance of $4,000? 5 (d) Assume the same facts as in (c), except that there is a $2,000 debit balance in 16 Allowance for Doubtful Accounts. What amount of bad debt expense will Miracle record? 17 (e) What is the weakness of the direct write-off method of reporting bad debt expense? 18 NOTE: Enter a number in cells requesting a value; enter either a number or a formula in cells with a "?". 19 20 21 (a) Amount of bad debt expense if direct write-off method is Value 22 23 Balance Balance, Allowance for Doubtful Account $3,000 CR 25 Bad debt expense: 26 Total credit sales $1,000,000 27 Estimated bad debt percentage 2% 28 Total estimated bad debt expense 7 29 Amount to be recorded as bad debt expense ? 30 31 32 ) Balance 33 Balance, Allowance for Doubtful Account $4,000 CR 34 Bad debt expense: 35 Accounts Receivable, Dec 31 Value 36 Estimated bad debt percentage 5% 37 Total estimated bad debt expense 38 Amount to be recorded as bad debt expense 33 40 41 42 (d) Balance En P8-2B Sheet1 Ready Accessibility: Good to go 24 (b) ADA