P8. 2

provided in (c) P8.2 (LO 2) Writing Information related to Mit 2) Writing Information related to Mingenback Ltd. for 2020 is summarized be 2,500,000 Total credit sales 875,000 Accounts receivable at December 31 33,000 Bad debts written off ne-off wete ounts receivable Down Instructions art if it uses the direct write-off men at amount of bad debt expense will Mingenback Ltd. report if it use of accounting for bad debts? b. Assume that Mingenback Ltd. estimates nat Mingenback Ltd. estimates its bad debt expense based on 0% of accounts recei What amount of bad debt expense will Mingenback record enback record if it has an Allowance for Dou Accounts credit balance of 3,000? c. Assume the same facts as in (b), except that there is a 3.000 that there is a 3.000 debit balance in Allowance for Doubs Accounts. What amount of bad debt expense will Mingenback on d. What is the weakness of the direct write-off method of reporting bad debt expense