At December 31, Hawke Company reports the following results for its calendar year. Cash sales Credit sales $ 340,000 $ 850,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts 2. Bad debts are estimated to be 4% of credit sales. Show how Accounts Receivable and the Allowance for Doubtful Accounts appea on its December 31 balance sheet. Answer is not complete. Current assets: Bad debts expense Add: Allowance for doubtful accounts T * $ 765,000 debit $ 6,100 debit S 34,000 $ 34,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Required information
[The following information applies to the questions displayed below.]
At December 31, Hawke Company reports the following results for its calendar year.
$ 340,000
$ 850,000
In addition, its unadjusted trial balance includes the following items.
Cash sales
Credit sales
Accounts receivable.
Allowance for doubtful accounts
2. Bad debts are estimated to be 4% of credit sales. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear
on its December 31 balance sheet.
$ 765,000 debit
$ 6,100 debit
Answer is not complete.
Current assets
Bad debts expense
Add: Allowance for doubtful accounts
S 34,000
$
34,000
Transcribed Image Text:Required information [The following information applies to the questions displayed below.] At December 31, Hawke Company reports the following results for its calendar year. $ 340,000 $ 850,000 In addition, its unadjusted trial balance includes the following items. Cash sales Credit sales Accounts receivable. Allowance for doubtful accounts 2. Bad debts are estimated to be 4% of credit sales. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet. $ 765,000 debit $ 6,100 debit Answer is not complete. Current assets Bad debts expense Add: Allowance for doubtful accounts S 34,000 $ 34,000
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