Answer Happy

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 $ 160,000 Credit sales $ 400,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable $ 216,000 debit Allowance for doubtful accounts $ 2,200 debit Required: 1. Prepare the adjusting entry to record bad debts under each separate assumption. a. Bad debts are estimated to be 3% of credit sales. b. Bad debts are estimated to be 2% of total sales. c. An aging analysis estimates that 5% of year-end accounts receivable are uncollectible. Adjusting entries (all dated December 31). View transaction list
Journal entry worksheet < A B C An aging analysis estimates that 5% of year-end accounts receivable are uncollectible. Note: Enter debits before credits. Date General Journal Debit Credit December 31 Bad debts expense Allowance for doubtful accounts Record entry Clear entry View general journal