Required Information Problem 7-2A Estimating and reporting bad debts LO P2, P3 The following information applies to the questions displayed below.) At December 31, 2018, Hawke Company reports the following results for its calendar year. Cash sales Credit sales $2,151,300 3,859,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts $1,169, 277 debit 12,880 debit roblem 7-2A Part 1 equired: Prepare the adjusting entry for this company to recognize bad debts under each of the followin independent assumptions. a. Bad debts are estimated to be 2% of credit sales. (Round your final answers to the nearest whole dollar.) Required information 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 2% of credit sales. (Round your final answers to the nearest whole dollar.) b. Bad debts are estimated to be 1% of total sales. C. An aging analysis estimates that 5% of year-end accounts receivable are uncollectible. (Round your final answers to the nearest whole dollar.) Adjusting entries (all dated December 31, 2018). View transaction list Journal entry worksheet 1 2 3 Bad debts are estimated to be 2% of credit sales. Note: Enter debits before credits Transaction General Journal Debit Credit