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

a$.$ 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.

b$.$ Prepare the ad$?$ Allowance for Doubtful Accounts is a $$13,400$ 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 $$2,400$ debit.

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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 $$13,400$ 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 $$2,400$ debit.