At December $31,$ Hawke Company reports the following results for its calendar year.

Cash sales

$$280,000$

Credit sales

$$700,000$

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

Accounts receivable

$$210,000$ debit

Allowance for doubtful accounts

$$2,500$ debit

Required:

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

a$.$ Bad debts are estimated to be $2\%$ of credit sales.

b$.$ Bad debts are estimated to be $1\%$ of total sales.

c$.$ An aging analysis estimates that $6\%$ of year$-$end accounts receivable are uncollectible.

Adjusting entries $($all dated December $31).$

Journal entry worksheet

Bad debts are estimated to be $2\%$ of credit sales.

Note: Enter debits before credits.