P8-2A Information related to Hamilton plc for 2017 is summarized below. Total credit sales 2,500,000 Accounts receivable at December 31 970,000 Bad debts written off 66,000 Instructions (a) What amount of bad debt expense will Hamilton report if it uses the direct write-off method of accounting for bad debts? (b) Assume that Hamilton estimates its bad debt expense to be 3% of credit sales. What amount of bad debt expense will Hamilton record if it has an Allowance for Doubtful Accounts credit balance of 4,000? (c) Assume that Hamilton estimates its bad debt expense based on 7% of accounts receiv- able. What amount of bad debt expense will Hamilton 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 Allow- ance for Doubtful Accounts. What amount of bad debt expense will Hamilton record? (e) - What is the weakness of the direct write-off method of reporting bad debt expense