Required information

Problem $9-2$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.

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

Accounts receivable

$$360,000$ debit

Allowance for doubtful accounts

$$2,900$ debit

Problem $9-2$A $($Algo$)$ Part $2$

Bad debts are estimated to be $4\%$ of credit sales. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear

on its December $31$ balance sheet.

Current assets: