At December 31, Hawke Company reports the following results for its calendar year. Cash sales $...

 

Transcribed Image Text:

At December 31, Hawke Company reports the following results for its calendar year. Cash sales $ 100,000 Credit sales $ 250,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts $225,000 debit $ 1,800 debit Problem 7-2A (Algo) Part 2 2. Bad debts are estimated to be 4% of credit sales. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet. Current assets: Answer is not complete. Accounts receivable $ 225,000 Less: Allowance for doubtful accounts $ 225,000 At December 31, Hawke Company reports the following results for its calendar year. Cash sales $ 100,000 Credit sales $ 250,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts $225,000 debit $ 1,800 debit Problem 7-2A (Algo) Part 2 2. Bad debts are estimated to be 4% of credit sales. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet. Current assets: Answer is not complete. Accounts receivable $ 225,000 Less: Allowance for doubtful accounts $ 225,000

Answer rating: 100% (QA)

To calculate the Allowance for Doubtful Accounts we need to use the fo... View the full answer