unts. P8.2 (LO 2), AP Writing Here is information related to Morgane Company for 2022. Total credit sales $1,500,000 840,000 Accounts receivable at December 31 Uncollectibles written off 37,000 Instructions a. What amount of bad debt expense will Morgane Company report if it uses the direct write-off method of accounting for uncollectibles? b. Assume that Morgane Company uses the percentage-of-receivables basis to record bad debt expense and concludes that 4% of accounts receivable will become uncollectible. What amount of bad debt expense will the company record if Allowance for Doubtful Accounts has a credit balance of $3,000? c. Assume the same facts as in part (b), except that there is a $1,000 debit balance in Allowance for Doubtful Accounts. What amount of bad debt expense will Morgane record? d. What is a weakness of the direct write-off method of recording bad debt expense?

Instructions a. What amount of bad debt expense will Morgane Company report if it uses the direct write-off method of accounting for uncollectibles? b. Assume that Morgane Company uses the percentage-of-receivables basis to record bad debt expense and concludes that 4% of accounts receivable will become uncollectible. What amount of bad debt expense will the company record if Allowance for Doubtful Accounts has a credit balance of $3,000 ? c. Assume the same facts as in part (b), except that there is a $1,000 debit balance in Allowance for Doubtful Accounts. What amount of bad debt expense will Morgane record? d. What is a weakness of the direct write-off method of recording bad debt expense