regarding C: also write down an advantage of using the allowance method of accounting for bad debts.

Part-B At each calendar year-end, Fahad Electric Co. uses the percent of accounts receivable method to estimate bad debts On December 31, 2019, it has outstanding accounts receivable of $500,000, and it estimates that 1.59 will be uncollectible. (1 % marks) 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 Partec There are two methods of accounting for bad debts including direct write off method and allowance method