At December 31, Hawke Company reports the following results for its calendar year. Cash sales Credit sales $ 400,000 $ 1,000,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts $ 540,000 debit $ 5,400 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. 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. Adjusting entries (all dated December 31). Journal entry worksheet Bad debts are estimated to be 3% of credit sales. Note: Enter debits before credits. General Journal Debit Credit Date December 31 Record entry Clear entry View general journal Journal entry worksheet Bad debts are estimated to be 2% of total sales. Note: Enter debits before credits. General Journal Debit Credit Date December 31 Record entry Clear entry View general journal Journal entry worksheet An aging analysis estimates that 5% of year-end accounts receivable are uncollectible. Note: Enter debits before credits. Date General Journal Debit Credit December 31 Record entry Clear entry View general journal