. Part- At year-end (December 31). Double-Y Co. estimates its bad debts as 1% of its annual credit sales of $800,000. Double-Y records its bad debts expense for that estimate. (1 % marks) . On the following March 10, Double-Y decides that the $2,500 account of Clips Co, is uncollectible and writes it off as a bad debt. (1 mark) On May 25, Clips Co. unexpectedly pays the amount previously written off. (1 mark) Required: Prepare the journal entries of Double-Y Co. to record these transactions and events of December 31, March 10, and May 25. Part-B At each calendar year-end, Fahad Electric Co. uses the percent of accounts receivable method to estimate bad debts. On December 31, 2019, it has outstanding accounts receivable of S500,000, and it estimates that 1.5% will be uncollectible. (1 45 marks) Required: Prepare the adjusting entry to record bad debts expense for year 2019 under the assumption that the Allowance for Doubtful Accounts has a $3.000 debit balance before the adjustment. Pute There are two methods of accounting for bad debts including direct write-off method and allowance method. Required: Write down an advantage of using the allowance method of accounting for bad debts. (1 mark)