Question: please answer all parts with correct calculations and explanations. QUESTION: At December 31, Hawke Company reports the following results for its calendar year. Cash sales
please answer all parts with correct calculations and explanations. QUESTION:
At December 31, Hawke Company reports the following results for its calendar year. Cash sales $ 80,000 Credit sales $ 200,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable $ 108,000 debit Allowance for doubtful accounts $ 1,100 debit Required: 1. Prepare the adjusting entry to record bad debts under each separate assumption. Bad debts are estimated to be 3% of credit sales. Bad debts are estimated to be 2% of total sales. An aging analysis estimates that 5% of year-end accounts receivable are uncollectible. Adjusting entries (all dated December 31).
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