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. Cash sales Credit sales $2,054,310 3,406,000 In addition, its unadjusted trial balance includes the following items Accounts receivable Allowance for doubtful accounts $1,032,018 debit 27,300 debit Problem 7-2A Part 1 Required: 1. Prepare the adjusting entry for this company to recognize bad debts under each of the following independent assumptions . Bad debts are estimated to be 2% of credit sales (Round your final answers to the nearest whole dollar) 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 (Round your final answers to the nearest whole dollar.) Adjusting entries (all dated December 31, 2018) View transaction list Print Journal entry worksheet References Bad debts are estimated to be 1% of total sales. Note: Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View general journal Adjusting entries (all dated December 31, 2018) View transaction list Print Journal entry worksheet References An aging analysis estimates that 5% of year-end accounts receivable are uncollectible. Note: Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View general journal 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, 083 Cash sales Credit sales $2,654,310 3,486,800 In addition, its unadjusted trial balance includes the following items Accounts receivable, Allowance for doubtful accounts $1,032,018 debit 27,380 debit Problem 7-2A Part 2 2. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31, 2018, balance she assuming that bad debts are estimated to be 2% of credit sales Answer is complete but not entirely correct. Current assets Accounts receivable Less Allowance for doubt $ 1032 018 16,650) 1025 158 Part 1 of 3 Required Information Problem 7-2A Estimating and reporting bad debts LO P2, P3 The following information applies to the questions displayed below) 0 R3 At December 31, 2018, Hawke Company reports the following results for its calendar year Cash sales Credit sales $2,054,310 3,406,000 In addition, its unadjusted trial balance includes the following items Accounts receivable Allowance for doubtful accounts $1,032,018 debit 27,308 debit franco Problem 7-2A Part 3 3. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31, 2018, balance sheet assuming that an aging analysis estimates that 5% of year-end accounts receivable are uncollectible