At December 31, Hawke Company reports the following results for its calendar year. Cash sales Credit sales $ 280,000 $ 700,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts $210,000 debit $ 2,500 debit Bad debts are estimated to be 2% of credit sales. Show how Accounts Receivable and the Allowance for Doubtful Accounts appe its December 31 balance sheet. urrent assets:

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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
Credit sales
$ 280,000
$ 700,000
In addition, its unadjusted trial balance includes the following items.
Accounts receivable
Allowance for doubtful accounts
$210,000 debit
$ 2,500 debit
2. Bad debts are estimated to be 2% of credit sales. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear
on its December 31 balance sheet.
Current assets:
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. Cash sales Credit sales $ 280,000 $ 700,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts $210,000 debit $ 2,500 debit 2. Bad debts are estimated to be 2% 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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