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 $ 100,000 Credit sales $ 250,000 In addition, its unadjusted trial balance includes the following items Accounts receivable Allowance for doubtful accounts $225,000 debit $ 1,800 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. 5 225.000 Current assets TAccounts receivable Less Allowance for doubtful accounts $ 225.000