Problem 7-2A 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 $1,473,280 $3,952,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts $1,197,456 debit $ 29,080 debit Problem 7-2A Part 1 Required: 1. Prepare the adjusting entry to record bad debts under each separate assumption. a. Bad debts are estimated to be 2% of credit sales b. Bad debts are estimated to be 1% of total sales. c. An aging analysis estimates that 5% of year-end accounts receivable are uncollectible, Adjusting entries (all dated December 31). (Do not round intermediate calculations.) M mework Rrired information Journal entry worksheet Badmatte bere Tract De O . X E R. U