As of December 31, the Hawke Company reports the following results for its calendar year. Cash sales
Question:
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.
- Bad debts are estimated at 2% of credit sales.
- Bad debts are estimated at 1% of total sales.
- 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.)
Fundamental Accounting Principles
ISBN: 978-0077862275
22nd edition
Authors: John Wild, Ken Shaw, Barbara Chiappetta