Required Information Problem 7-2A (Algo) Estlmating and reporting bad debts LO P2, P3 [The following information applles to the questlons 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 1 Requlred: 1. Prepare the adjusting entry to record bad debts under each separate assumption. a. Bad debts are estlmated 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 recelvable are uncollectlble. Adjusting entrles (all dated December 31). Journal entry worksheet 5 7 Record the adjusting entry required, if any, related to the July 31 cash balance. Note: Enter debits before credits