Required information[The following information applies to the questions displayed below.]At December 31, Hawke Company reports the following results for its calendar year.Cash salesCredit sales$ 480,000$ 1,200,000In addition, its unadjusted trial balance includes the following items.Accounts receivableAllowance for doubtful accountsequired:Prepare the adjusting entry to record bad debts under each separate assumption.a. Bad debts are estimated to be 3% of credit sales.b. Bad debts are estimated to be 2% of total sales.c. An aging analysis estimates that 5% of year-end accounts receivable are uncollectible.justing entries (all dated December 31).View transaction list View journal entry worksheetNoAсDateDecember 31$ 648,000 debit$ 6,500 debitDecember 31December 31General JournalBad debts expenseAllowance for doubtful accountsBad debts expenseAllowance for doubtful accountsBad debts expenseAllowance for doubtful accountsDebit69,52050,38965,401Credit69,52050,38980,085Ⓒ

Introduction: - Journal entry is the first stage of accounting process. Journal entry used to record…

uired: repare the adjusting entry to record bad debts under each separate assumption. a. Bad debts are estimated to be 3% of credit sales. . Bad debts are estimated to be 2% of total sales. c. An aging analysis estimates that 5% of year-end accounts receivable are uncollectible.

uired: repare the adjusting entry to record bad debts under each separate assumption. a. Bad debts are estimated to be 3% of credit sales. . Bad debts are estimated to be 2% of total sales. c. An aging analysis estimates that 5% of year-end accounts receivable are uncollectible.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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