Required Information Problem 9-2A 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 $1,827,910 $2,927,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts $886,881 debit $ 16,020 debit Problem 9-2A 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 (all dated December 31). (Do not round Intermediate calculations.) View transaction list View journal entry worksheet No Transaction General Journal Debit Credit 1 a. Bad debts expense 58,540 Allowance for doubtful accounts 58.540 2 b 47,549 Bad debts expense Allowance for doubtful accounts 47.549 3 c. Bad debts expense 60,364 Allowance for doubtful accounts 60,364 Required information Problem 9-2A 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 $1,827,910 $2,927,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts $886,881 debit $ 16,020 debit Problem 9-2A Part 2 2. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet given the facts in part 1a. Current assets