PSA7.7 Calculate bad debt amounts using different methods. The following information relates to Fast Lane Ltd for 2023. RSAT Total credit sales Accounts receivable at 31 December 2023 Bad debts written off Required LO8 $400 000 92 000 5800 (a) What amount of bad debts expense will Fast Lane Lid report if it uses the direct write-off method of accounting for bad debts? (b) Assume that Fast Lane Lid decides to estimate its bad debts expense based on 6% of accounts receivable. What amount of bad debts expense will the business record if it has an allowance for doubtful debts credit balance of $3200 at 31 December 2022? (c) Assume the same facts as in part (b), except that there is a debit balance of $2300 in allowance for doubtful debts. What amount of bad debts expense will Fast Lane Ltd record? (d) What is the weakness of the direct write-off method of reporting bad debts expense