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

Cash sales	$ 240,000
Credit sales	$ 600,000

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

Accounts receivable	$ 324,000	debit
Allowance for doubtful accounts	$ 3,200	debit

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

Adjusting entries (all dated December 31).

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 5% of year-end accounts receivable are uncollectible.

2. Bad debts are estimated to be 3% of credit sales. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet.

3. An aging analysis estimates that 5% of year-end accounts receivable are uncollectible. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet.

Journal entry worksheet Bad debts are estimated to be 3% of credit sales. Note: Enter debits before credits. Journal entry worksheet Bad debts are estimated to be 2% of total sales. Note: Enter debits before credits. Journal entry worksheet An aging analysis estimates that 5% of year-end accounts receivable are uncollectible. Note: Enter debits before credits. Current assets: \begin{tabular}{|l|l|ll|} \hline & & & \\ \hline & & $ & 0 \\ \hline \end{tabular} Current assets: \begin{tabular}{|l|l|ll|} \hline & & & \\ \hline & & $ & 0 \\ \hline \end{tabular}