q Required information 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. An aging analysis estimates that $4\%$ of year$-$end accounts receivable are uncollectible. Show how Accounts Receivable and the

Allowance for Doubtful Accounts appear on its December $31$ balance sheet.

$[$The following information applies to the questions displayed below.$]$

At December $31,$ Hawke Company reports the following results for its calendar year.

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

Accounts receivable

$ $900,000$ debit

Allowance for doubtful accounts

$$7,200$ debit

Required:

Prepare the adjusting entry to record bad debts under each separate assumption.

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 $4\%$ of year$-$end accounts receivable are uncollectible.

Adjusting entries $($all dated December $31).$