Required information. Problem 9-2A (Algo) 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 $ 50,000 $125,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts $112,500 debit $900 debit Problem 9-2A (Algo) Part 2 2. Bad debts are estimated to be 4% of credit sales. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet. Current assets: Accounts receivable Less: Allowance for doubtful accounts $ 0