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. CashsalesCreditsales$240,000$600,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts 524,000 $3,200debit 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 5% of year-end accounts receivable are uncollectible. Journal entry worksheet Bad debts are estimated to be 3% of credit sales. Note: Enter debits before credits. Journal entry worksheet Bad debts are estimated to be 2% of total sales. Note: Enter debits before credits. Journal entry worksheet An aging analysis estimates that 5% of year-end accounts receivable are uncollectible. Note: Enter debits before credits. 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. In addition, its unadjusted trial balance includes the following items. Problem 7.2A (Algo) Part 2 2. Bad debts are estimated to be 3% of credit sales. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet. 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. In addition, its unadjusted trial balance includes the following items. Problem 7-2A (Algo) Part 3 3. An aging analysis estimates that 5% of year-end accounts receivable are uncollectible. Show how Accounts Receivable ar Allowance for Doubtful Accounts appear on its December 31 balance sheet