Required information

Use the following information for the Exercises $13-14$ below. $($Algo$)$

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

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

Exercise $7-14($Algo$)$ Percent of receivables method LO P$3$

a$.$ Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses $4\%$ 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 $$13,300$ 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 $$2,300$ debit.