Hi,

I am struggling how to answer this question. Any help is appreciated!

Application Problem 6-11A a-c DejaVu Company has been in business for several years and has the following information for its operations in the current year: Total credit sales $3,456,000 Bad debts written off in the year 79,000 Accounts receivable balance on December 31 (after writing off the bad debs above) 505,000 Assume that DejaVu Company decides to estimate its bad debts expense at 2% of credit sales. ii What amount of bad debts expense will the company record if it has a credit balance (before adjustment) of $6,500 in its Allowance for Doubtful Accounts on December 31? Bad debs expense is ' ii. What amount of bad debts expense will it record if there is a debit balance (before adjustment) of $6,500 in its Allowance for Doubtful Accounts on December 31? Bad debts expense $ ' LINK TD TEXT LINK TO TEXT LINK TO TEXT Assume that DejaVu Company estimates is bad debts based on an aging analysis of its year-end accounts receivable, which indicates that a provision for uncollectible accounts of $54,000 is required. i. What amount of bad debts expense will the company record if it has a credit balance (before adjustment) of $6,500 in its Allowance for Doubtful Accounts on December 31? $ Bad debts expense ' ii. What amount of bad debts expense will it record if there is a debit balance (before adjustment) of $6,500 in its Allowance for Doubtful Accounts on December 31? Bad debs expense is ' LINK TO TEXT LINK TO TEXT LINK TO TEXT What amount of bad debts expense will DejaVu report if it uses the direct writeoff method of accounting for bad debts? Bad debts expense $ LINK TO TEXT LINK TO TEXT LINK TO TEXT