Information related to Novak Company for 2019 is summarized below.

Information related to Novak Company for 2019 is summarized below. Total credit sales Accounts receivable at December 31 Bad debts written off $2,575,000 853,000 34,900 (a) What amount of bad debt expense will Novak Company report if it uses the direct write-off method of accounting for bad debts? 34,900 (b) Assume that Novak Company estimates its bad debt expense based on 5% of accounts receivable. What amount of bad debt expense will Novak record if it has an Allowance for Doubtful Accounts credit balance of $2,700? $ 42,515 (c) Assume that Novak Company estimates its bad debt expense based on 5% of accounts receivable. What amount of bad debt expense will Novak record if it has an Allowance for Doubtful Accounts debit balance of $2,700? $ 42,785