At December 31, 2017, Hawke Company reports the following results for its calendar year. Cash sales $ 1,436,130 Credit sales 3,101,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable $ 939,603 debit Allowance for doubtful accounts 21,540 debit

Required: 1. Prepare the adjusting entry for this company to recognize bad debts under each of the following independent assumptions. Bad debts are estimated to be 4% of credit sales. Bad debts are estimated to be 3% of total sales. An aging analysis estimates that 7% of year-end accounts receivable are uncollectible.