! Required information Problem 7-2A Estimating and reporting bad debts LO P2, P3 [The following information applies to t

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Required Information Problem 7 2a Estimating And Reporting Bad Debts Lo P2 P3 The Following Information Applies To T 1 (82.14 KiB) Viewed 27 times

! Required information Problem 7-2A Estimating and reporting bad debts LO P2, P3 [The following information applies to the questions displayed below.] At December 31, Hawke Company reports the following results for its calendar year. Cash sales Credit sales $1,431,000 $3,395,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts $1,028,685 debit $ 21,580 debit

Problem 7-2A Part 1 Required: 1. Prepare the adjusting entry to record bad debts under each separate assumption. a. Bad debts are estimated to be 2% of credit sales. b. Bad debts are estimated to be 1% of total sales. c. An aging analysis estimates that 5% of year-end accounts receivable are uncollectible. Adjusting entries (all dated December 31). (Do not round intermediate calculations.)

Journal entry worksheet 1 Bad debts are estimated to be 2% of credit sales. 2 3 Note: Enter debits before credits. Transaction a. General Journal Debit Credit

Journal entry worksheet < 1 2 3 Bad debts are estimated to be 1% of total sales. Note: Enter debits before credits. Transaction b. General Journal Debit Credit >

Journal entry worksheet < 1 2 An aging analysis estimates that 5% of year-end accounts receivable are uncollectible. 3 Note: Enter debits before credits. Transaction C. General Journal Debit Credit

Problem 7-2A Part 2 2. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet given the facts in part 1a. Current assets: $ 0