Question 15 6 points Part A At year-end (December 31). Double Y Co. estimates its bad debts as 1% of its annual credit sales of $800,000. Double-Y records its bad debts expense for that estimate. (% marks) . On the following March 10, Double Y decides that the $2,500 account of Clips Co. is uncollectible and writes it off as a bad debt. (1 mark) On May 25, Clips Co unexpectedly pays the amount previously written off. (1 mark) Required: Prepare the journal entries of Double-Y Co to record these transactions and events of December 31, March 10, and May 25. Part- At each calendar year-end, Fahad Electric Co uses the percent of accounts receivable method to estimate bad debt. On December 31, 2019, it has outstanding accounts receivable of $500,000, and it estimates that 1.5% will be collectible. (1 mark Required: Prepare the adjusting entry to record bad debts expense for year 2019 under the assumption that the Allowance for Doubtful Accounts has a $3,000 debit balance before the adjustment Part-C There are two methods of accounting for bad debts including direct write-off method and allowance method. Required: Write down an advantage of using the allowance method of accounting for bad debts (1 mark) For the toolbar, press ALT+F10/PC or ALTINF10 M B TV5 Paragraph Arial 14px L. 0 0 o