Required information

$[$The following information applies to the questions displayed below.$]$

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

a$.$ Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses $5\%$ of total accounts recelvable to estimate uncollectibles, instead of the aging of recelvables 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 $$12,200$ 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 $$1,200$ debit.

Complete this question by entering your answers in the tabs below.

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

Estimated balance of allowance for uncolectibles