Generally correct but

Ashley is likely in Canada, and the CRA tax rule/policy is that the "Allowance for Doubtful Receivables" must be based on specifically identified customers & invoices - not just a general overall percentage of AR.  You can still apply percentages to those specific customer & bills based on your estimated likelihood of collection.  I just export an AR aging to spreadsheet and then run down the overdue columns and add a factor column for estimated loss ratio with the extended total.  Basically you have to show that you have tried to make a reasonable assessment based on actual account conditions.

I do use use 'general % allowance' as a way to create a monthly expense to add to ADR.

You only have to make the detailed analysis and list at the year-end to backup the amount on the balance sheet at that time.