Required information Problem 7-2A Estimating and reporting bad debts LO P2, P3 [The following information applies to the questions displayed below.] At December 31, 2017, Hawke Company reports the following results for its calendar year. Cash sales Credit sales $1,446,770 3,069,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts $929,987 debit 29,570 debit To recognize bad debts under each of the following independent assumptions. a. Bad debts are estimated to be 3% of credit sales b. Bad debts are estimated to be 2% of total sales An aging analysis estimates that 6% of year-end accounts receivable are uncollectible, C. Problem 7-21 Problem 7-2A Part 1 Required: 1. Prepare the adjusting entry for this company to recognize bad debts under each of the following independent assumptions a. Bad debts are estimated to be 3% of credit sales. b. Bad debts are estimated to be 2% of total sales. c. An aging analysis estimates that 6% of year-end accounts receivable are uncollectible. Adjusting entries (all dated December 31, 2017) View transaction list View journal entry worksheet No Transaction 1 General Journal Debit Bad debts expense Nlowance for douth accounts Credit 92,070 2 2 b. 92,070 Bad debts expense Allowance for doubtfuccounts - 90,315 3 90,315 Baddetti experise Asowance for doubtful accounts