! Required information 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 $1,567,440 $3,892,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts $1,179,276 debit $ 12,490 debit Problem 7-2A (Algo) Part 1 Required: 1. Prepare the adjusting entry to record bad debts under each separate assumption. a. Bad debts are estimated to be 3% of credit sales. b. Bad debts are estimated to be 2% of total sales. c. An aging analysis estimates that 6% of year-end accounts receivable are uncollectible. Adjusting entries (all dated December 31). (Do not round intermediate calculations.) View transaction list Journal entry worksheet 1 2 3 3 > N Bad debts are estimated to be 3% of credit sales. Note: Enter debits before credits. General Journal Debit Credit Transaction a. Record entry Clear entry View general journal Adjusting entries (all dated December 31). (Do not round intermediate calculations.) View transaction list Journal entry worksheet Bad debts are estimated to be 2% of total sales. Note: Enter debits before credits. General Journal Debit Credit Transaction b. Record entry Clear entry View general journal Adjusting entries (all dated December 31). (Do not round intermediate calculations.) View transaction list Journal entry worksheet 1 2 3 An aging analysis estimates that 6% of year-end accounts receivable are uncollectible. Note: Enter debits before credits. Transaction General Journal Debit Credit C. Record entry Clear entry View general journal