Required information

Problem 7-2A Estimating and reporting bad debts LO P2, P3

Skip to question

[The following information applies to the questions displayed below.] At December 31, Hawke Company reports the following results for its calendar year.

Cash sales	$	1,266,330
Credit sales	$	3,708,000

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

Accounts receivable	$	1,123,524	debit
Allowance for doubtful accounts	$	16,940	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 4% of credit sales.
2. Bad debts are estimated to be 3% of total sales.
3. An aging analysis estimates that 7% of year-end accounts receivable are uncollectible.

Problem 7-2A Estimating and reporting bad debts LO P2, P3

Skip to question

[The following information applies to the questions displayed below.] At December 31, Hawke Company reports the following results for its calendar year.

Cash sales	$	1,266,330
Credit sales	$	3,708,000

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

Accounts receivable	$	1,123,524	debit
Allowance for doubtful accounts	$	16,940	debit

Problem 7-2A Part 2

2. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet given the facts in part 1a.

Current assets:
Accounts receivable	$1,123,524
Less: Allowance for doubtful accounts	148,320	$975,204

my less allowance for doubtful accounts is wrong how do i calculate this