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Required information

$[$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

$$760,000$

$$1,900,000$

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

Accounts receivable

Allowance for doubtful accounts

$$570,000$ debit

$$6,800$ debit

Required:

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 $6\%$ of year$-$end accounts receivable are uncollectible.

Adjusting entries $($all dated December $31).$

Journal entry worksheet

A

B

C

Bad debts are estimated to be $2\%$ of credit sales.

Note: Enter debits before credits.

$\backslash$table$[[$Date$,$General Journal,Debit,Credit$],[$December $31,,,],[,,,],[,,,],[,,,]]$