Problem 7-2A Estimating and reporting bad debts LO P2, P3

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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	$	1,876,990
Credit sales	$	3,713,000

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

Accounts receivable	$	1,125,039	debit
Allowance for doubtful accounts	$	20,900	debit

Problem 7-2A Part 2

2. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet given the facts in part 1a.