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[The following information applies to the questions displayed below.] At December 31, Hawke Company reports the following results for its calendar year.

Cash sales	$ 280,000
Credit sales	$ 700,000

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

Accounts receivable	$ 630,000	debit
Allowance for doubtful accounts	$ 5,000	debit

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

1. Bad debts are estimated to be 4% of credit sales.
2. Bad debts are estimated to be 3% of total sales.
3. An aging analysis estimates that 4% of year-end accounts receivable are uncollectible.

Adjusting entries (all dated December 31).

• Bad debts are estimated to be 4% of credit sales.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
December 31

• Bad debts are estimated to be 3% of total sales.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
December 31

• An aging analysis estimates that 4% of year-end accounts receivable are uncollectible.

Note: Enter debits before credits.

Date	General Journal	Debit	Credit
December 31