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. $1,992,680 3,180,000 Cash sales Credit sales In addition, its unadjusted trial balance includes the following items. $963,540 debit 23,550 debit Accounts receivable Allowance for doubtful accounts 1 2 Bad debts are estimated to be 3% of credit sales. Note: Enter debits before credits. Transaction General Journal Debit Credit a.