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 Credit sales $1,402,010 $3,924,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable $1,188,972 debit Allowance for doubtful accounts $ 18,400 debit Problem 7-2A Part 1 Required: 1. Prepare the adjusting entry to record bad debts under each separate assumption. a. Bad debts are estimated to be 2% of credit sales. 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. Adjusting entries (all dated December 31). (Do not round intermediate calculations.) Journal entry worksheet Bad debts are estimated to be 2% of credit sales. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet