Information related to Mingenback Company for 2015 is summarized below.

A. What amount of bad debt expense will Mingenback Company report if it uses the direct write-off method of accounting for bad debts?

B. Assume that Mingenback Company estimates its bad debt expense to be 2% of credit sales. What amount of bad debt expense will Mingenback record if it has an Allowance for Doubtful Accounts credit balance of $4,000?

C. Assume that Mingenback Company estimates its bad debt expense based on 6% of accounts receivable. What amount of bad debt expense will Mingenback record if it has an Allowance for Doubtful Accounts credit balance of $3,000?

D. Assume the same facts as in (c), except that there is a $3,000 debit balance in Allowance for Doubtful Accounts. What amount of bad debt expense will Mingenback record?

E. What is the weakness of the direct write-off method of reporting bad debt expense?

6 (b) 10 13 15 18 19 20 23 24 27 28 29 30 31 12 14 18 19 20 21 24 27 29 30 31 32 S2,500,000 Total credit sales Accounts receivable at December 31 S75,000 33,000 Bad debts written off