Required information Problem 7-2A (Algo) Estimating and reporting bad debts LO P2, P3 Skip to...
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Required information
Problem 7-2A (Algo) Estimating and reporting bad debts LO P2, P3
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[The following information applies to the questions displayed below.]
At December 31, Hawke Company reports the following results for its calendar year.
Cash sales
$ 560,000
Credit sales
$ 1,400,000
In addition, its unadjusted trial balance includes the following items.
Accounts receivable
$ 756,000
debit
Allowance for doubtful accounts
$ 7,600
debit
2. Bad debts are estimated to be 3% of credit sales. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet.
Current assets:
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