Computing bad debt amounts problem! Hi! I need some help and explanation regarding this problem below. Here is information related to Morgane Company for 2017. Total credit sales: $1,500,000 Accounts receivable at December 31: 840,000 Bad debts written off: 37,000 (a) What amount of bad debt expense will Morgane Company report if it uses the direct write-off method of accounting for bad debts? (b) Assume that Morgane Company decides to estimate its bad debt expense based on 4% of accounts receivable. 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 reporting bad debt expense?