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, Hawke Company reports the following results for its calendar year. Cash sales Credit sales $1,512, 220 $3,957, eee In addition, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts $1,198,971 debit $ 24,680 debit Problem 7-2A Part 1 Required: 1. Prepare the adjusting entry to record bad debts under each separate assumption a. Bad debts are estimated to be 2% of credit sales. b. Bad debts are estimated to be 1% of total sales. c. An aging analysis estimates that 5% of year-end accounts receivable are uncollectible Adjusting entries fall dated December 31). (Do not round Intermediate calculations.) 6 Next > of 7 4 5