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 $ 520,000 Credit sales $ 1,300,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts $ 390,000 debit $.4,700 debit Problem 7-2A (Algo) Part 1 ences Required: 1. Prepare the adjusting entry to record bad debts under each separate assumption a. Bad debts are estimated to be 2% of credit soles. b. Bad debts are estimated to be 1% of total sales c. An aging analysis estimates that 6% of year end accounts receivable are uncollectible. Adjusting entries (all doted December 31) View transaction list View transaction list Journal entry worksheet