Skip to main content

Chapter 7 Problems

AnswerSaved

Help opens in a new windowSave & ExitSubmit

Item2

Part 1 of 3

2.5points

ItemSkipped

eBook

Print

Check my workCheck My Work button is now enabled5

Item 2

Item 2 Part 1 of 3 2.5 points Item Skipped

Required information

[The following information applies to the questions displayed below.] At December 31, Hawke Company reports the following results for its calendar year.

Cash sales	$	1,412,210
Credit sales	$	3,177,000

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

Accounts receivable	$	962,631	debit
Allowance for doubtful accounts	$	22,440	debit

Required: 1. Prepare the adjusting entry to record bad debts under each separate assumption.

1. Bad debts are estimated to be 3% of credit sales.
2. Bad debts are estimated to be 2% of total sales.
3. An aging analysis estimates that 6% of year-end accounts receivable are uncollectible.

View transaction list Journal entry worksheet 2 3 Bad debts are estimated to be 3% of credit sales. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal