7 O 12.5 points 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 $2,187,820 $3,800,000 In addition, its unadjusted trial balance includes the following items Accounts receivable Allowance for doubtful accounts $1,153,824 debit $ 22,060 debit Problem 7-2A Part 1 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.) 7 Cash sales Credit sales $2,187,820 $3,800,000 In addition, its unadjusted trial balance includes the following items. 12.5 points Accounts receivable Allowance for doubtful accounts $1,153,824 debit $ 22,860 debit Problem 7-2A Part 1 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.) No Transaction Answer is complete but not entirely correct. General Journal Bad debts expense Allowance for doubtful accounts Credit 1 Debit 114,240 114,240 2 b. Bad debts expense Allowance for doubtful accounts 119,916 119,916 3 C Bad debts expense Allowance for doubtful accounts 46,369 46,3693