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, Hawke Company reports the following results for its calendar year.

Cash sales	$	2,197,110
Credit sales	$	2,971,000

In addition, its unadjusted trial balance includes the following items.

Accounts receivable	$	900,213	debit
Allowance for doubtful accounts	$	11,130	debit

Problem 7-2A Part 1

Required: 1. Prepare the adjusting entry to record bad debts under each separate assumption.

1. Bad debts are estimated to be 3% of credit sales.
2. Bad debts are estimated to be 2% of total sales.
3. An aging analysis estimates that 6% of year-end accounts receivable are uncollectible.

Adjusting entries (all dated December 31). (Do not round intermediate calcu