Required information Skip to question [The following information applies to the questions displayed below.] At December 31, 2017, Hawke Company reports the following results for its calendar year. Cash sales $ 2,070,750 Credit sales 2,978,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable $ 902,334 debit Allowance for doubtful accounts 20,000 debit To recognize bad debts under each of the following independent assumptions. Bad debts are estimated to be 4% of credit sales. Bad debts are estimated to be 3% of total sales. An aging analysis estimates that 7% of year-end accounts receivable are uncollectible. rev: 06_11_2020_QC_CS-216062 Required: 1. Prepare the adjusting entry for this company to recognize bad debts under each of the following independent assumptions. Bad debts are estimated to be 4% of credit sales. Bad debts are estimated to be 3% of total sales. An aging analysis estimates that 7% of year-end accounts receivable are uncollectible. Adjusting entries (all dated December 31, 2017).

Journal entry worksheet

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

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
a.