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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 $6\%$ 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 $$12,600$ 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 $$1,600$ debit.

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

Req $B$ and $C$

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 $$12,600$ 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 $$1,600$ debit.

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Journal entry worksheet

$12$

Record estimated bad debts assuming that Allowance for Doubtful Accounts has a $$12,600$ credit balance.