Required information

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 $$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 A $A^2$ counts is a $$1,200$ debit.a

Required information

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 $31.$

$\backslash$table$[[,,,,$ays Past Due,,$],[,$Total,$0,1$ to $30,31$ to $60,61$ to $90,$Over $90],[\backslash$table$[[$Accounts receivable$],[$Percent uncollectible$]],$$$580,000,\backslash$table$[[$$$398,000$