Required information Problems 7-2A (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 $220,000 $ 550,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts $495,000 debit $ 4,000 debit Problems 7-2A (Algo) Part 1 Required: 1. Prepare the adjusting entry to record bad debts under each separate assumption. a. An aging analysis estimates that 4% of year-end accounts receivable are uncollectible. Adjusting entries (all dated December 31). Problems 7-2A (Algo) Part 1 Required: 1. Prepare the adjusting entry to record bad debts under each separate assumption. a. An aging analysis estimates that 4% of year-end accounts receivable are uncollectible. Adjusting entries (all dated December 31). No Date: A December 31 Bad debts expense Answer is complete and correct. General Journal Debit Credit 23,800 23,800 Allowance for doubtful accounts Required information Problems 7-2A (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 $220,000 $550,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts. $495,000 debit $ 4,000 debit Problems 7-2A (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. Current assets: Accounts receivable S 495,000 Less: Allowance for doubtful accounts $ 495,000