Part. At year-end (December 31). Double-Y Co. estimates its bad debts as 196 of its soul credit sales of $800.000 Double Y records its bad debts expense for that estimate (1 mark) On the following March 10, Double Y decides that the $2,500 account of Clips Co. is uncollectible and write 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- 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 teceivable of $500,000, and it estimes that 1.5% will be collectible. I maku) Required: Prepare the adjusting entry to record bad debts expense for year 2019 under the assumption that the Allowance for Doubtful Accounts has a $5,000 debit budince before the adjustment Part There are two methods of accounting for bad debts including duect write-off method and allowance method Required: Write down an advantage of using the allowance method of accounting for bad debts (1 mark)