Compute bad debt amounts. (LO3) P8-2B Information related to Izmir Company for 2014 is summarized below. Total credit sales t920,000 Accounts receivable at December 31 369,000 Bad debts written off 23,400 Instructions (a) What amount of bad debt expense will Izmir Company report if it uses the direct write-off method of accounting for bad debts? (b) Assume that Izmir Company decides to estimate its bad debt expense to be 3% of credit sales. What amount of bad debt expense will Izmir record if Allowance for Doubtful Accounts has a credit balance of t3,000? (c) Assume that Izmir Company decides to estimate its bad debt expense based on 7% of accounts receivable. What amount of bad debt expense will Izmir Company record if Allowance for Doubtful Accounts has a credit balance of t4,000? (d) Assume the same facts as in (c), except that there is a t2,000 debit balance in Allow- ance for Doubtful Accounts. What amount of bad debt expense will Izmir record? (e) > What is the weakness of the direct write-off method of reporting bad debt expense