4 Part 2 of 3 1.66 points Required information Use the following information for the Exercises 13-14 below. (Algo) [The following information applies to the questions displayed below.] Daley Company prepared the following aging of receivables analysis at December 31. Help Save & Exit Submit Check my work Days Past Due Total eBook Accounts receivable Percent uncollectible $655,000 $413,000 1 to 38 $107,000 3% 4% 31 to 60 61 to 90 $53,000 $35,000 7% 9% Over 90 $47,000 12% Hint Print References Exercise 7-14 (Algo) Percent of receivables method LO P3 a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 5% of total accounts receivabl to estimate uncollectibles, instead of the aging of receivables method. b. Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balanc in the Allowance for Doubtful Accounts is a $13,700 credit. c. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $2,700 debit. Complete this question by entering your answers in the tabs below. Req A Req B and C b. Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $13,700 credit. c. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $2,700 debit. View transaction list Show ok Problem 7-4A (Algo) Accounts receivable transactions and bad debts adjustments LO C1, P2, P3 Liang Company began operations in Year 1. During its first two years, the company completed a number of transactions involving sales on credit, accounts receivable collections, and bad debts. These transactions are summarized as follows. Year 1 a. Sold $1,349,300 of merchandise (that had cost $984,300) on credit, terms n/30. b. Wrote off $19,500 of uncollectible accounts receivable. c. Received $673,100 cash in payment of accounts receivable. d. In adjusting the accounts on December 31, the company estimated that 1.70% of accounts receivable would be uncollectible. ces Year 2 e. Sold $1,550,400 of merchandise (that had cost $1,340,800) on credit, terms n/30. f. Wrote off $29,300 of uncollectible accounts receivable. g. Received $1,271,300 cash in payment of accounts receivable. h. In adjusting the accounts on December 31, the company estimated that 1.70% of accounts receivable would be uncollectible. Required: Prepare journal entries to record Liang's Year 1 and Year 2 summarized transactions and its year-end adjustments to record bad debts expense. (The company uses the perpetual inventory system, and it applies the allowance method for its accounts receivable.) (Round your intermediate calculations to the nearest dollar.) Complete this question by entering your answers in the tabs below. JE Year 1 JE Year 2 Prepare journal entries to record Liang's Year 1 summarized transactions and its year-end adjustments to record bad debts expens (The company uses the perpetual Inventory system and it applies the allowance method for its accounts receivable.) View transaction list Journal entry worksheet 1 2 3 4 5