Question: 1. Organics Plus is considering which bad debt estimation method works best for its company. It is deciding between the income statement method, balance sheet

1. Organics Plus is considering which bad debt estimation method works best for its company. It is deciding between the income statement method,

1. Organics Plus is considering which bad debt estimation method works best for its company. It is deciding between the income statement method, balance sheet method of receivables, and balance sheet aging of receivables method. - If it uses the income statement method, bad debt would be estimated at 4%. - If it were to use the balance sheet method, it would estimate bad debt at 12%. - If it were to use the balance sheet aging of receivables method, it would split its receivables into three categories: he following information is available from the year-end income statement and balance sheet. a. Calculate bad debt expense, using the three methods in the table below. b. Prepare the year-end adjusting entries for bad debt using each of the 3 methods. (next page)

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