Problem 9-2A (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 $ 100,000 Credit sales $ 250,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable $ 225,000 debit Allowance for doubtful accounts $ 1,300 debit Problem 9-2A (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 Answer is not complete Current assets: Accounts receivable $ 225.000 Less: Allowance for doubtful accounts $225,000