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. Cash sales Credit sales $1,626,400 $2,836,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts $859,308 debit $ 29,300 debit Problem 7-2A (Algo) Part 2 2. Bad debts are estimated to be 3% of credit sales. Show how Accounts Receivable and the Allowance fo on its December 31 balance sheet Current assets