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, 2017, Hawke Company reports the following results for its calendar year Cash sales $1,430,610 Credit sales 3,938,000 In addition, its unadjusted trial balance includes the following items. $1,193,214 debit 16, 290 debit Accounts receivable Allowance for doubtful accounts 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 Bad debts are estimated to be 3% of credit sales. Bad debts are estimated to be 2% of total sales. An aging analysis estimates that 6% of year-end accounts receivable are uncollectible a. b. c