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 year. Cash sales Credit sales $1,494,470 $3,445,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts $ $1,043,835 debit 16,320 debit Problem 7-2A (Algo) Part 2 2. Bad debts are estimated to be 4% of credit sales. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet. Current assets: $ 0