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 $ 400,000 $ 1,000,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts $540,000 debit $ 5,400 debit 2. Bad debts are estimated to be 3% of credit sales. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet. Answer is complete but not entirely correct. Current assets: Accounts receivable $ 540,000 Less: Allowance for doubtful accounts 35,400 $ 504,600