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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

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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 $1,891, 350 $2,977,000 In addition, its unadjusted trial balance includes the following items Accounts receivable Allowance for doubtful accounts 5902,031 debit $ 20,340 debit Problem 9-2A Part 3 In addition, its unadjusted trial balance includes the following items Accounts receivable Allowance for doubtful accounts $902,031 debit $ 20,340 debit Problem 9-2A Part 3 3. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet given the tacts in part 1. (Do not round Intermediate calculations) Answer is complete but not entirely correct. Current assets Accounts receivable Less Allowance for doubtful accounts $ 902.031 20 340 881.691 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.) 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 Accounts receivable Loss Allowance for doubtful accounts Problem 9-2A Part 3 3. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet given the facts In part 1c (Do not round intermediate calculations.) Current assets Accounts receivable Less Allowance for doubtful accounts

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