At December 31, 2017 Hawke company reports the following results for its calendar year. cash sales $2,177,930 credit sales 3,028,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable $917,484 debit Allowance for doubtful accounts 26,240 debit Prepare the adjusting entry to recognize bad debts 3% of credit sales 7% of total sales An aging analysis estimates that 7% of year-end accounts receivable are uncollectible.