Problem 7.2A (Algo) Estimating and reporting bad debts LO P2, P3 [The following information applies to the questions displayed below] At December 31, Hawke Company reports the following results for its calendar yeac. In addition, its unadjusted trial balance includes the foliowing ifems. Accounts receivable Allowance for doubt fut accounts 5. 756, abe debit + 7,66a debit Problem 7-2A (Algo) Part 1 Requiredit 1. Prepare the adjusting entry to recard bad debts under each separale assimption. a. Bacl debts are estimated to be 3% of credit sedes. b. Bad debts are estimated to be 2% of total sales. c. An aging analyeis estimates that 5% of year-end accounts receivable are uncollectible. Adjusting entries (all dated December 3t) Journal entry worksheet Required information Problem 7.2A (Algo) Estimating and reporting bad debts LO P2, P3 [The following information applies to the questions disployed beiow] At December 31, Hawke Company reports the following resuls for its calendar year, In addition, its unadjusted trial balance includes the following items. Accounts receivable 3756, ese debit i 7,60debit Altewance for doubtful acceunts Problem 7.2A (Algo) Part 2 2. Bad debts are estimated to be 3x of credit sales. Show how Accounts Recelvable and the Allowance for Doubiful Accounts appetar on its December 31 balance sheet. Required information Problem 7-2A (Algo) Estimating and reporting bad debts LO P2, P3 [The following information applies to the questions dispiayed below] At December 31, Hawke Company reports the following results for its calendar year. In addition, its unadjusted trial balance includes the following items. Accounts receivabte 3. 756, aeo deblt Atlowance for doubtful accounts Problem 7-2A (Algo) Part 3 3. An aging analysis estimates that 5% of year-end accounts receivable are uncollectible. Stiow how Accounts Receivable and the Aliowance for Doubtrul Accounts appear on its December 31 balance sheet