Daley Company estimates uncollectible accounts using the allowance method at December 31. It prepared the following aging of receivables analysis.

		Days Past Due
	Total			0			1 to 30			31 to 60			61 to 90			Over 90
Accounts receivable	$	650,000		$	412,000		$	106,000		$	52,000		$	34,000		$	46,000
Percent uncollectible					2	%		3	%		6	%		8	%		11	%

a.	Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 4% of total accounts receivable 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 balance in the Allowance for Doubtful Accounts is a $13,600 credit and $2,600 debit.

Daley Company estimates uncollectible accounts using the allowance method at December 31. lt prepared the following aging of receivables analysis Days Past Due Total 1 to 30 31 to 60 61 to 90 Over 90 Accounts receivable $650,000 $412,000 $106,000 $52,000 $34,000 $46,000 Percent uncollectible 2% 3% 6% 8% 11% a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 4% of total accounts receivable to estimate uncollectibles, instead of the aging of receivables method Estimated balance of allowance for uncollectibles