Problem 7-2A Estimating and reporting bad debts LO P2, P3 The following information applies to the questions clayed below) At December 31, 2017, Hawke Company reports the following results for its calendar you Cash sales $ 2153,40 Credit takes 3.502.000 In addition, its unachusted belance includes the following terms Accounts receivable $1,00006 Allowance for de accounts 19.040 To recognize bed debts under each of the following independent assumption Bad debes are estimated to be 4% of credit sales Bad debts are ested to be 3 of total sales C An aging analysis estimates that 7% of year and accounts receivable are uncoctible References Section Broek Problem 7-2A Estimating and reporting bad debts LO P2, P3 1. Award: 375 points Problem 7-2A Part 1 Required: 1. Prepare the adjusting entry for this company to recognize bad debts under each of the following independent smoons. a. Bad debts are estimated to be 4% of credit sales b. Bad debts are estimated to be 3% of total sales. c. An aging analysis estimates that 7 of year-end accounts receivable are uncollectible Adjusting entries (al dated December 31, 2017) Dashboard SCCC Fresno City College My Library Brylewa D W Login - Spending A Pearson Recom Intermediate Grade 7. Homework 6 Saved Help Save & E Che Credit sales 3,502,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts $1,061, 106 debit 12,040 debit To recognize bad debts under each of the following independent assumptions a. Bad debts are estimated to be 4% of credit sales. b. Bad debts are estimated to be 3% of total sales c. An aging analysis estimates that 7% of year-end accounts receivable are uncollectible Problem 7-2A Part 2 2. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31, 2017, balance sheet given the facts in part 1