Required information Problem 9-2A 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 $2,003, 270 $2,831,000 In addition, its unadjusted trial balance includes the following items, Accounts receivable Allowance for doubtful accounts $857,793 debit $ 25,770 debit Problem 9-2A Part 1 Required: 1. Prepare the adjusting entry to record bad debts under each separate assumption a. Bad debts are estimated to be 2% of credit sales. 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, Required information Adjusting entries (all dated December 31). (Do not round intermediate calculations.) View transacconlist Journal entry worksheet 2 3 Bad debts are estimated to be 2% of credit sales Note Entert before credits Transaction General Journal Record entry Clear entry View general Journal