Problem 7-2A Estimating and reporting bad debts LO P2, P3

[The following information applies to the questions displayed below.] At December 31, 2018, Hawke Company reports the following results for its calendar year.

Cash sales	$	1,768,050
Credit sales		3,114,000

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

Accounts receivable	$	943,542	debit
Allowance for doubtful accounts		18,590	debit

Problem 7-2A Part 1

Required: 1. Prepare the adjusting entry for this company to recognize bad debts under each of the following independent assumptions.

1. Bad debts are estimated to be 3% of credit sales. (Round your final answers to the nearest whole dollar.)
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. (Round your final answers to the nearest whole dollar.)

Adjusting entries (all dated December 31, 2018).