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Required information

Problem $7-2$A $($Algo$)$ Estimating and reporting bad debts LO P$2,$ P$3$

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

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

Cash sales $$320,000$

Credit sales $$800,000$

References

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

Accounts receivable

Allowance for doubtful accounts

$$432,000$ debit

$$4,300$ debit

Problem $7-2$A $($Algo$)$ Part $3$

$3.$ An aging analysis estimates that $5\%$ of year$-$end accounts receivable are uncollectible. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December $31$ balance sheet.

Current assets

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