Question: Accepted a(n) $7,400, 6%, 90-day note in granting a time extension on the past-due account receivable from Midnight Co. At December 31, Hawke Company reports

Accepted a(n) $7,400, 6%, 90-day note in granting a time extension on the past-due account receivable from Midnight Co. At December 31, Hawke Company reports the following results for its calend Part 1 of 3 Cash sales Credit sales $2,020,300 $3,389,000 2.5 points In addition, its unadjusted trial balance includes the following items. eBook Accounts receivable $1,026,867 debit Allowance for doubtful accounts $ 15,250 debit Print References Required: 1. Prepare the adjusting entry to record bad debts under each separate assumption. a. Bad debts are estimated to be 4% of credit sales. b. Bad debts are estimated to be 3% of total sales. c. An aging analysis estimates that 7% of year-end accounts receivable are uncollectible

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