Problem 7-2A Estimating and reporting bad debts LO P2 [The following information applies to the questions displayed below.) At December 31, 2015, Hawke Company reports the following results for its calendar year. Cash sales Credit sales $ 1,647,330 3,278,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts $993,234 debit 28,880 debit Problem 7-2A Part 1 Required: 1. Prepare the adjusting entry for this company to recognize bad debts under each of the following independent assumptions. a. Bad debts are estimated to be 4% of credit sales. b. Bad debts are estimated to be 3% of total sales. c. An aging analysis estimates that 7% of year-end accounts receivable are uncollectible. Adjusting entries (all dated December 31, 2015). (Round your final answers to the nearest whole dollar.) View transaction list Journal entry worksheet 2 3 Bad debts are estimated to be 4% of credit sales. Note: Enter debits before credits. Transaction General Journal Debit Credit a. Record entry Clear entry View general journal Problem 7-2A Part 2 2. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31, 2015, balance sheet facts given the facts in part 1a: Current assets: Problem 7-2A Part 3 3. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31, 2015, balance sheet given the facts in part 1c. (Round your intermediate and final answers to the nearest whole dollar.) Current assets: $ 0