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

Cash sales	$ 640,000
Credit sales	$ 1,600,000

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

Accounts receivable	$ 480,000	debit
Allowance for doubtful accounts	$ 5,800	debit

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

ACCOUNils payable Accounts receivable Bad debts expense Notes payable Notes receivable Sales Current assets