Question

At December 31, 2017, Hawke Company reports the following results for its calendar year. Cash sales $ 1,797,570 Credit sales 3,330,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable $ 1,008,990 debit Allowance for doubtful accounts 10,230 debit Required: 1. Prepare the adjusting entry for this company to recognize bad debts under each of the following independent assumptions. Bad debts are estimated to be 2% of credit sales. Bad debts are estimated to be 1% of total sales. An aging analysis estimates that 5% of year-end accounts receivable are uncollectible. Adjusting entries (all dated December 31, 2017

Answer 1