Ch 7 Homework Part 1 of 3 20 P Required information Problem 7-2A (Algo) Estimating and reporting bad debts LO P2, P3 The following information apples to the questions displayed below At December 31, Hawke Company reports the following results for its calendar year Cash sales $340,000 Credit sales In addition, its unadjusted trial balance includes the folowing items Accounts receivable Allowance for doubtful accounts 5745,00 36.1 debit Problem 7-2A (Algo) Part 1 Required: 1. Prepare the adjusting entry to record bad debts under each separate assumption a. Bad debts are estimated to be 4% of credit sales b. Bad debts are estimated to be 3% of total sales c. An aging analysis estimates that 4% of year-end accounts receivable are uncollectible Adjusting entries (all dated December 31 Save & Exit Check my work