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Problem 7 - 2 A ( Algo ) Estimating and reporting bad debts LO P 2 , P 3 Skip to question [ The following

Problem 7-2A (Algo) Estimating and reporting bad debts LO P2, P3
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[The following information applies to the questions displayed below.]
At December 31, Hawke Company reports the following results for its calendar year.
Cash sales $ 160,000
Credit sales $ 400,000
In addition, its unadjusted trial balance includes the following items.
Accounts receivable $ 216,000 debit
Allowance for doubtful accounts $ 2,200 debit
Problem 7-2A (Algo) Part 1
Required:
1. Prepare the adjusting entry to record bad debts under each separate assumption.
Bad debts are estimated to be 3% of credit sales.
Bad debts are estimated to be 2% of total sales.
An aging analysis estimates that 5% of year-end accounts receivable are uncollectible.
Adjusting entries (all dated December 31).

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