Part A At year-end (December 31). Double-Y Co. estimates its bad debts as 1. or its annual credit sales of $800.000. Double-Y records its bad debts expense for that estimate.( i 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. Pard-B At cach 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 $500,000, and it estimates that 1.5% will be uncollectible. (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 Part- There are two methods of accounting for bad debts including direct write-of" method and allowance method. Required: Write down an advantage of using the allowance method of accounting for bad debts. (1 mark) For the toolbar, press ALT F10 (PC) or ALTIN F10 (Mac)