As of December 31, the Hawke Company reports the following results for its calendar year.

 Cash sales $1,207,450 

Credit sales $2,804,000

 In addition, your unadjusted trial balance includes the following items. 

Accounts receivable $ 849,612

 debit Provision for doubtful accounts receivable $ 15,110 debit

1. Prepare the adjusting entry to record bad debts under each assumption separately.

1. Bad debts are estimated at 2% of credit sales.
2. Bad debts are estimated at 1% of total sales.
3. An aging analysis estimates that 5% of accounts receivable at the end of the year are uncollectible.

Adjusting entries (all dated December 31). (Do not round intermediate calculations.)

2. Show how Accounts Receivable and Allowance for Doubtful Accounts appear on your balance sheet as of December 31, given the facts in part 1a .

3. Show how Accounts Receivable and Allowance for Doubtful Accounts appear on your balance sheet as of December 31, given the facts in part 1c. (Do not round intermediate calculations.)

Answer rating: 100% (QA)

1 To prepare the adjusting entries for bad debts under each of the given assumptions we need to calculate the estimated bad debt expense for each scen... View the full answer