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	$	1,255,520
Credit sales	$	2,859,000

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

Accounts receivable	$	866,277	debit
Allowance for doubtful accounts	$	26,980	debit

1. Bad debts are estimated to be 2% of credit sales.
2. Bad debts are estimated to be 1% of total sales.
3. An aging analysis estimates that 5% of year-end accounts receivable are uncollectible.

2. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet given the facts in part 1a.