December 31, Hawke Company reports the following results for its calendar year. ...
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Accounting
December 31, Hawke Company reports the following results for its calendar year.
Cash sales
$
1,905,000
Credit sales
$
5,682,000
In addition, its unadjusted trial balance includes the following items.
Accounts receivable
$
1,270,100
debit
Allowance for doubtful accounts
$
16,580
debit
Bad debts are estimated to be 1.5% of credit sales. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet.
Can you show how you get the answer because I was taking the credit cost $5,682,000 and multiplying it by 1.5 to get $85,230 and that's wrong? What am I missing? Thank you.
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