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

Cash sales	$	1,661,860
Credit sales	$	2,936,000

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

Accounts receivable	$	889,608	debit
Allowance for doubtful accounts	$	27,880	debit

Required: 1A. Prepare the adjusting entry to record bad debts under each separate assumption.

1. Bad debts are estimated to be 3% of credit sales.
2. Bad debts are estimated to be 2% of total sales.
3. An aging analysis estimates that 6% of year-end accounts receivable are uncollectible.

Adjusting entries (all dated December 31). (Do not round intermediate calculations.)

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 6% of year end accounts receivable are uncollectible.

Transaction	General Journal	Debit	Credit
a.

1B. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet given the facts in part 1a.

Current Assets:
	$
	$	$

1C. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet given the facts in part 1. (Do not round intermediate calculations.)

Current Assets:
	$
	$