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late bad debt amounts using different methods. L08 The following information relates to Carson Ltd for 2023. Required (a) What amount of bad debts expense

image text in transcribed late bad debt amounts using different methods. L08 The following information relates to Carson Ltd for 2023. Required (a) What amount of bad debts expense will Carson Ltd report if it uses the direct write-off method of accounting for bad debts? (b) Assume that Carson Ltd decides to estimate its bad debts expense based on 8% of accounts receivable. What amount of bad debts expense will the business record if it has an allowance for doubtful debts credit balance of $4000 at 31 December 2022? (c) Assume the same facts as in part (b), except that there is a debit balance of $21570 in allowance for doubtful debts. What amount of bad debts expense will Carson Ltd record? (d) What is the weakness of the direct write-off method of reporting bad debts expense

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