Problem $7-2$A $($Static$)$ Estimating and reporting bad debts LO P$2,$ P$3$

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$[$The following information applies to the questions displayed below.$]$

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

Cash sales $ $1,905,000$

Credit sales $ $5,682,000$

In addition, its unadjusted trial balance includes the following items.

Accounts receivable $ $1,270,100$ debit

Allowance for doubtful accounts $ $16,580$ debit

Problem $7-2$A $($Static$)$ Part $2$

$2.$ Bad debts are estimated to be $1\mathrm{.}5\%$ of credit sales. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December $31$ balance sheet.