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 $1,782,870 $3,207,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable $971, 721 debit Allowance for doubtful s 22,700 debit accounts 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 Prev 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 $1,782,870 Credit S3,207,000 sales In addition, its unadjusted trial balance includes the following items. Accounts receivable $971,721 debit Allowance for doubtful s 22.700 debit accounts 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 3% of credit sales. b. Bad debts are estimated to be 2% of total sales. c. An aging analysis estimates that 6% of year-end accounts receivable are uncollectible. Adjusting entries (all dated December 31). (Do not round intermediate calculations.) No Transaction Answer is complete and correct. General Journal Debit Bad debts expense 96,210 Allowance for doubtful accounts Credit 96,21 2 b . 99.797 Bad debts expense Allowance for doubtful accounts 99.797 3 81,003 Bad debts expense Allowance for doubtful accounts 81,003