Problem 8-4A Here is information related to Freeman Company for 2014. Total credit sales $1,581,000 Accounts receivable at December 31 790,500 Bad debts written off 48,300

What amount of bad debt expense will Freeman Company report if it uses the direct write-off method of accounting for bad debts?

Assume that Freeman Company decides to estimate its bad debt expense based on 3% of accounts receivable. What amount of bad debt expense will the company record if Allowance for Doubtful Accounts has a credit balance of $3,800?

Assume the same facts as in part (b), except that there is a $2,500 debit balance in Allowance for Doubtful Accounts. What amount of bad debt expense will Freeman record?