[The following information applies to the questions displayed below.] At December 31, Hawke Company reports the following results for its calendar year.

Cash sales	$	1,457,110
Credit sales	$	3,341,000

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

Accounts receivable	$	1,012,323	debit
Allowance for doubtful accounts	$	27,790	debit

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

1. Bad debts are estimated to be 4% of credit sales.
2. Bad debts are estimated to be 3% of total sales.
3. An aging analysis estimates that 7% of year-end accounts receivable are uncollectible.