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.

$\backslash$table$[[$Cash sales,$$760,000$

$1$

Required information

Problem $7-2$A $($Algo$)$ Estimating and reporting bad debts LO P$2,$ P$3$

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

$1$

points

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

Cash sales $$400,000$

Credit sales $$1,000,000$

Credit sales $$1,000,000$

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

Accounts receivable

$$900,000$ debit

Allowance for doubtful accounts

$$7,200$ debit

References

Problem $7-2$A $($Algo$)$ Part $3$

$3.$ An aging analysis estimates that $4\%$ of year$-$end accounts receivable are uncollectible. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December $31$ balance sheet.

$\backslash$table$[[$Current assets:,,$],[$Accounts receivable,,$],[$Less: Allowance for doubtful accounts,$$,0]]$