Estimating and recording bad debts

Required information Problem 7-2A Estimating and reporting bad debts LO P2, P3 [The following information applies to the questions displayed below.) At December 31, 2018, Hawke Company reports the following results for its calendar year. Cash sales Credit sales $2,124, 760 2,901,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts $879,003 debit 18,920 debit Problem 7-2A Part 1 Required: 1. Prepare the adjusting entry for this company to recognize bad debts under each of the following independent assumptions. a. Bad debts are estimated to be 4% of credit sales. (Round your final answers to the nearest whole dollar.) b. Bad debts are estimated to be 3% of total sales. c. An aging analysis estimates that 7% of year-end accounts receivable are uncollectible. (Round your final answers to the nearest whole dollar)