[The following information applies to the questions displayed below.] At December 31, 2017, Hawke Company reports the following results for its calendar year.

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 $1,858,130 3,046,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts $922,938 debit 27,140 debit Required: 1. Prepare the adjusting entry for this company to recognize bad debts under each of the following independent assumptions a. b. c. Bad debts are estimated to be 3% of credit sales Bad debts are estimated to be 2% of total sales. An aging analysis estimates that 6% of year-end accounts receivable are uncollectible