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

				Days Past Due
	Total			0			1 to 30				31 to 60				61 to 90				Over 90
Accounts receivable	$	655,000		$	413,000			$	107,000			$	53,000			$	35,000			$	47,000
Percent uncollectible					3	%			4	%			7	%			9	%			12	%

Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 5% of total accounts receivable to estimate uncollectibles, instead of the aging of receivables method.

Estimated balance of allowance for uncollectibles

• Record estimated bad debts assuming that Allowance for Doubtful Accounts has a $13,700 credit balance.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Dec 31

• Record estimated bad debts assuming that Allowance for Doubtful Accounts has a $2,700 debit balance.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
Dec 31