Required information [The following information applies to the questions displayed below.) At December 31, 2017, Hawke Company reports the following results for its calendar year. Cash sales Credit sales $1,486,370 3,716,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts $1,125,948 debit 21,680 debit Required: 1. Prepare the adjusting entry for this company to recognize bad debts under each of the following independent assumptions. 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 5% of year-end accounts receivable are uncollectible. Adjusting entries (all dated December 31, 2017)