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Use the following information for the Exercises $14-15$ below. $($Algo$)$

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

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

Exercise $7-15($Algo$)$ Percent of receivables method LO P$3$

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 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.

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Req B and C

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