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

equired: 1. Prepare the adjusting entry to record bad debts under each separate assumption.

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.

Adjusting entries (all dated December 31). (Do not round intermediate calculations.)

• Bad debts are estimated to be 2% of credit sales.

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
a.

• Bad debts are estimated to be 1% of total sales.

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
b.

• An aging analysis estimates that 5% of year-end accounts receivable are uncollectible.

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
c.