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Required information

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

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

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

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

a$.$ Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses $4\mathrm{.}5\%$ 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 $$12,000$ 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 $$1,000$ debit.