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 $ 340,000 Credit sales $ 850,000 In addition, its unadjusted trial balance includes the following items Accounts receivable Allowance for doubtful accounts $ 765,000 debit $ 6, 100 debit Required: 1. Prepare the adjusting entry to record bad debts under each separate assumption a. Bad debts are estimated to be 4% of credit sales. b. Bad debts are estimated to be 3% of total sales, c. An aging analysis estimates that 4% of year-end accounts receivable are uncollectible. Adjusting entries (all duted December 31) View transaction list Journal entry worksheet . 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 4% of year-end accounts receivable are uncollectible. Justing entries (all dated December 31). View transaction list Journal entry worksheet 7 A B Bad debts are estimated to be 4% of credit sales. Notes Enter debits before credits Credit Date General Journal December 31 Allowance for doubtful accounts Bad debts expense Debit 34,000 34.000 Record entry Clear entry View general Journal Adjusting entries (all dated December 31). View transaction list Journal entry worksheet