15-17

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 $ 320,000 Credit sales $ 800,000 In addition, its unadjusted trial balance includes the following items Accounts receivable $ 432,00e debit Allowance for doubtful accounts $ 4,300 debit . 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 list Journal entry worksheet Bad debts are estimated to be 2% of total sales. Note: Enter debits before credits. Date December 31 General Journal Debit Credit Record entry Clear entry View general journal View transaction list Journal entry worksheet