Daley Company prepared the following aging of receivables analysis at December $31.$

Total Days Past Due

$01$ to $3031$ to $6061$ to $90$ Over $90$

Accounts receivable $ $570,000$ $ $396,000$ $ $90,000$ $ $36,000$ $ $18,000$ $ $30,000$

Percent uncollectible $1\%2\%5\%7\%10\%$

Required:

Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses $($expression error$)\%$ of total accounts receivable to estimate uncollectibles, instead of the aging of receivables method.

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 $$12,000$ credit.

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 $$1,000$ debit.