vo Required information Problem 7-2A (Algo) Estimating and reporting bad debts LO P2, P3 [The following information applies to the questions displayed below) Az December 31, Hawke Company reports the following results for its colendar year, Cash sales $ 240,000 5680.000 Credit sales In addition, its unadjusted trial balance includes the following items Accounts receivable Allowance for doubtful accounts 5 324,000 Debit 53,200 debit Problem 7-2A (Algo) Part 1 Required: 1. Prepare the adjusting entry to record bad debts under each separate assumption a. Bad debts are estimated to be 3% of credit sales. b. Bad debts are estimated to be 2% of total sales c. An aging analysis estimates that 5% of year-end accounts receivable are uncollectible. Adjusting entries (all dated December 31). View transaction lit Journal entry worksheet A B Bad debts are estimated to be 3% of credit sales