Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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 $ 1,777,560
Credit sales $ 2,989,000

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

Accounts receivable $ 905,667 debit
Allowance for doubtful accounts $ 11,710 debit

Problem 9-2A Part 1

Required: 1. Prepare the adjusting entry to record bad debts under each separate assumption.

  1. Bad debts are estimated to be 3% of credit sales.
  2. Bad debts are estimated to be 2% of total sales.
  3. An aging analysis estimates that 6% of year-end accounts receivable are uncollectible.

Adjusting entries (all dated December 31). (Do not round intermediate calculations.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing And Assurance Services An Integrated Approach

Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley

17th Edition

013517614X, 978-0135176146

More Books

Students also viewed these Accounting questions