Prepare the adjusting entry to record bad debts under each separate assumption. No Required information [The...

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Prepare the adjusting entry to record bad debts under each separate assumption. No Required information [The following information applies to the questions displayed below.] At December 31, Hawke Company reports the following results for its calendar year. a. Bad debts are estimated to be 2% of credit sales. b. Bad debts are estimated to be 1% of total sales. c. An aging analysis estimates that 6% of year-end accounts receivable are uncollectible. A $ 160,000 $ 400,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable $ 120,000 debit Allowance for doubtful accounts $ 1,400 debit Adjusting entries (all dated December 31). B Cash sales Credit sales C Date December 31 December 31 December 31 General Journal Bad debts expense Allowance for doubtful accounts Bad debts expense Allowance for doubtful accounts Bad debts expense Allowance for doubtful accounts >> Debit 80,000 > 56,000 73,400 Credit 80,000 56,000 73,400 Prepare the adjusting entry to record bad debts under each separate assumption. No Required information [The following information applies to the questions displayed below.] At December 31, Hawke Company reports the following results for its calendar year. a. Bad debts are estimated to be 2% of credit sales. b. Bad debts are estimated to be 1% of total sales. c. An aging analysis estimates that 6% of year-end accounts receivable are uncollectible. A $ 160,000 $ 400,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable $ 120,000 debit Allowance for doubtful accounts $ 1,400 debit Adjusting entries (all dated December 31). B Cash sales Credit sales C Date December 31 December 31 December 31 General Journal Bad debts expense Allowance for doubtful accounts Bad debts expense Allowance for doubtful accounts Bad debts expense Allowance for doubtful accounts >> Debit 80,000 > 56,000 73,400 Credit 80,000 56,000 73,400

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