Required information Problem 9-2A (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 $ 480,000 $ 1,200,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts $ 648,000 debit $ 6,500 debit Problem 9-2A (Algo) Part 1 Problem 9-2A (Algo) Part 1 Required: 1. Prepare the adjusting entry to record bad debts under each separate assumption. 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 5% of year-end accounts receivable are uncollectible. Adjusting entries (all dated December 31). Answer is complete but not entirely correct. No Date General Journal Debit Credit A December 31 Bad debts expense 36,000 Allowance for doubtful accounts 36,000 B December 31 Bad debts expense 33,600 > oo Allowance for doubtful accounts 33,600 C December 31 Bad debts expense 84,000 X Allowance for doubtful accounts 84,000 X