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[The following information applies to the questions displayed below.] At December 31, 2017, Hawke Company reports the following results for its calendar year.
Cash sales
$
1,665,110
Credit sales
3,670,000
In addition, its unadjusted trial balance includes the following items.
Accounts receivable
$
1,112,010
debit
Allowance for doubtful accounts
16,390
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 4% of credit sales.
Bad debts are estimated to be 3% of total sales.
An aging analysis estimates that 7% of year-end accounts receivable are uncollectible.
Adjusting entries (all dated December 31, 2017).
Journal entry worksheet 1 2 3 Bad debts are estimated to be 4% of credit sales. Note: Enter debits before credits. Transaction General Journal Debit Credit a. Record entry Clear entry View general journal Journal entry worksheet 1 2 3 > Bad debts are estimated to be 3% of total sales. Note: Enter debits before credits. General Journal Debit Credit Transaction b. Record entry Clear entry View general journal Journal entry worksheet
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