Required information

Problem $9-2$A $($Algo$)$ Estimating and reporting bad debts LO P$2,$ P$3$

$[$The following information applies to the questions displayed below.$]$

At December $31,$ Hawke Company reports the following results for its calendar year.

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

Accounts receivable

$ $324,000$ debit

Allowance for doubtful accounts

$$3,200$ debit

Problem $9-2$A $($Algo$)$ Part $1$

Required:

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 $5\%$ of year$-$end accounts receivable are uncollectible.

Adiustina entries $($all dated December $31).$