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 $ 400,000 Credit sales $ 1,000,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts $ 300,000 debit $ 3,600 debit 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 6% of year-end accounts receivable are uncollectible. Adjusting entries (all dated December 31). 0 Required information Adjusting entries (all dated December 31). View transaction list Journal entry worksheet > Bad debts are estimated to be 1% of total sales. Note: Enter debits before credits. General Journal Debit Credit Date December 31 Record entry Clear entry View general Journal Journal entry worksheet