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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 A Algo Estimating and reporting bad debts LO P P
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The following information applies to the questions displayed below.
At December Hawke Company reports the following results for its calendar year.
Cash sales $
Credit sales $
In addition, its unadjusted trial balance includes the following items.
Accounts receivable $ debit
Allowance for doubtful accounts $ debit
Problem A Algo Part
Required:
Prepare the adjusting entry to record bad debts under each separate assumption.
Bad debts are estimated to be of credit sales.
Bad debts are estimated to be of total sales.
An aging analysis estimates that of yearend accounts receivable are uncollectible.
Adjusting entries all dated December
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