Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

At December 31, Hawke Company reports the following results for its calendar year. Cash sales Credit sales $1,614, 180 33,172,000 In addition, its unadjusted trial

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
At December 31, Hawke Company reports the following results for its calendar year. Cash sales Credit sales $1,614, 180 33,172,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts $961, 116 debit $ 18,720 debit Required: 1. Prepare the adjusting entry to record bad debts under each separate assumption a. Bad debts are estimated to be 3% of credit sales. to. Bad debts are estimated to be 2% of total sales. c. An aging analysis estimates that 6% of year-end accounts receivable are uncollectible. Adjusting entries (all dated December 31). (Do not round Intermediate calculations.) View transaction list Journal entry worksheet Bad debts are estimated to be 3% of credit sales, Required: 1. Prepare the adjusting entry to record bad debts under each separate assumption 4. 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. Adjusting entries (all dated December 31). (Do not round Intermediate calculations.) View transaction list Journal entry worksheet 1 2 3 > Bad debts are estimated to be 3% of credit sales. Note Enter dubits before credits Debit General Journal Transaction Credit 3 Record Party At December 31, Hawke Company reports the following results for its calendar year. Cash sales Credit sales $1,614, 180 $3,172,00 In addition, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts 5961, 116 debit $ 18,720 debit 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. Current assets Destions displayed below) At December 31, Hawke Company reports the following results for its calendar year, Cash sales Credit sales $1,614,180 $3,172,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts $961, 116 debit $ 18,720 debit 3. An aging analysis estimates that 6% of year-end accounts receivable are uncollectible. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet. (Do not round Intermediate calculations) Current assets

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Information For Business Decisions

Authors: Billie Cunningham, Loren A. Nikolai, John Bazley

1st Edition

0030224292, 978-0030224294

More Books

Students also viewed these Accounting questions