A

Bad debts are estimated to be 4% of credit sales.

B

Bad debts are estimated to be 3% of total sales.

C

An aging analysis estimates that 4% of year-end accounts receivable are uncollectible.

Required information [The following information applies to the questions displayed below.] At December 31, Hawke Company reports the following results for its calendar year. CashsalesCreditsales$100,000$250,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts $225,000debit $1,800debit Required: 1. Prepare the adjusting entry to record bad debts under each separate assumption. a. Bad debts are estimated to be 4% of credit sales. b. Bad debts are estimated to be 3% of total sales. c. An aging analysis estimates that 4% of year-end accounts receivable are uncollectible. Adjusting entries (all dated December 31)