13 Required information Problem 7-2A Estimating and reporting bad debts LO P2, P3 [The following information applies to the questions displayed below) At December 31, Hawke Company reports the following results for its calendar year, Cash sales Credit sales $1,210,030 $3,729,000 ped In addition, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts $1,129,887 debit $ 12,070 debit Problem 7-2A Part 1 Required: 1. Prepare the adjusting entry to record bad debts under each separate assumption Required: 1. Prepare the adjusting entry to record bad debts under each separate assumption. a. Bad debts are estimated to be 3% of credit sales. b. Bad debts are estimated to be 2% of total sales. C. An aging analysis estimates that 6% of year-end accounts receivable are uncollectible. Adjusting entries (all dated December 31). (Do not round intermediate calculations.) Answer is complete but not entirely correct. No Transaction Debit Credit 1 a General Journal Bad debts expense Allowance for doubtful accounts 11.187 11.187 2 b 7,458 Bad debts expense Allowance for doubtful accounts 7.458 3 Bad debts expense Allowance for doubtful accounts 18,849 X O 18,849