Calculate baddebtamounts usingdifferent methods. LO8 The following information relates to Eason Ltd for 2019:

Total credit sales $200000

Accounts receivable at 31 December 2019 46000

Bad debts written off 2900

Required (a) What amount of bad debts expense will Eason Ltd report if it uses the direct write-off method of accounting for bad debts? (b) Assume that Eason Ltd decides to estimate its bad debts expense based on 5% of accounts receivable.Whatamountofbaddebtsexpensewillthebusinessrecordifithasanallowance for doubtful debts credit balance of $1600 at 31 December 2018? (c) Assume the same facts as in part (b), except that there is a debit balance of $1150 in allowance for doubtful debts. What amount of bad debts expense will Eason Ltd record? (d) What is the weakness of the direct write-off method of reporting bad debts expense?