Required information Problem 7-2A (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 Credit sales $280,000 $700,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts $ 210,000 debit $ 2,500 debit Problem 7-2A (Algo) Part 3 3. An aging analysis estimates that 6% 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