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. Total $ 620,000 Accounts receivable Percent uncollectible 0 $ 406,000 28 Days Past Due 31 to 60 $ 46,000 6% 1 to 30 $ 100,000 38 61 to 90 $ 28,000 8% Over 90 $ 40,000 118 Exercise 7-15 (Algo) Percent of receivables method LO P3 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 $13,000 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 $2,000 debit. Complete this question by entering your answers in the tabs below. Req A Req B and C 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. Estimated balance of allowance for uncollectibles 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 $2,000 debit. Show less View transaction list Journal entry worksheet Record estimated bad debts assuming that Allowance for Doubtful Accounts has a $13,000 credit balance. Note: Enter debits before credits. General Journal Debit Credit Date December 31 Record entry Clear entry View general Journal Journal entry worksheet Received Lee's payment for principal and interest on the note dated December 13. Assume no reversing entries were prepared. Note: Enter debits before credits. Date General Journal Debit Credit January 27 Record entry Clear entry View general journal M Lee Note Tomas Company Note H Cheng Note General Journal Use those calculated values to prepare your journal entries. View transaction list Journal entry worksheet Accepted a $12,000, 30-day, 8% note in granting H. Cheng a time extension on his past-due account receivable. Note: Enter debits before credits. Date General Journal Debit Credit March 17 Record entry Clear entry View general journal M Lee Note Tomas Company Note H Cheng Note General Journal Use those calculated values to prepare your journal entries. View transaction list Journal entry worksheet Wrote off the H. Cheng account against the Allowance for Doubtful Accounts. Note: Enter debits before credits. Date General Journal Debit Credit May 01 Record entry Clear entry View general journal M Lee Note Tomas Company Note H Cheng Note General Journal Use those calculated values to prepare your journal entries. View transaction list Journal entry worksheet Received the Tomas payment for principal and interest on the note dated March 3. Note: Enter debits before credits. Date General Journal Debit Credit June 01 Record entry Clear entry View general journal