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Required information Problem 7-2A (Algo) 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. In addition, its unadjusted trial balance includes the following items. Aecounts receivals 5108,000 debit N1owance for doubttul accounts. sis 1,100 debit Problem 7-2A (Algo) 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 5% of year-end accounts recelvable are uncollectible. Adjusting entries (all dated December 31). 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 5% of year-end accounts receivable are uncollectible. Adjusting entries (all dated December 31). A Bad debts are estimated to be 3% of credit sales. B Bad debts are estimated to be 2% of total sales. Problem 7-2A (Algo) 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. In addition, its unadjusted trial balance includes the following items. Accotuntti receivable Allowance fot doubtful accounts 108,000 debit 1,100 debit Problem 7-2A (Algo) Part 2 2. Bad debts are estimated to be 3% of credit soles. Show how Accounts Recelvable and the Allowance for Doubtful Accounts app on its December 31 balance sheet Required information Problem 7-2A (Algo) 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. In addition, its unadjusted trial balance includes the following items. Problem 7.2A (Algo) Part 3 3. An aging analysis estimates that 5% of year-end accounts receivable are uncollectible. Show hpw Accounts Receivable and Allowance for Doubtful Accounts appear on its December 31 balance sheet