^{I need help with my Accounting Homework}

^{Question 38}

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

Cash sales $ 1,492,480

Credit sales $ 3,888,000

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

Accounts receivable $ 1,178,064 debit

Allowance for doubtful accounts $ 11,720 debit

Required:

1. Prepare the adjusting entry to record bad debts under each separate assumption.

1. Bad debts are estimated to be 3% of credit sales.
2. Bad debts are estimated to be 2% of total sales.
3. An aging analysis estimates that 6% of year-end accounts receivable are uncollectible.

Adjusting entries (all dated December 31). (Do not round intermediate calculations.)

• 1.) Bad debts are estimated to be 3% of credit sales
• 2.) Bad debts are estimated to be 2% of total sales.
• 3.) An aging analysis estimates that 6% of year-end accounts receivable are uncollectible.