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

Required:

a$.$ 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.

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 $$12,000$ 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 $$1,000$ debit.

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