At December 31, Hawke Company reports the following results for its calendar year. Cash sales $ 160,000 Credit sales $ 400, 000 In addition, its unadjusted trial balance includes the following items. Accounts receivable $ 360,000 debit Allowance for doubtful accounts $ 2,900 debit Required: 1. Prepare the adjusting entry to record bad debts under each separate assumption. 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 4% of year - end accounts receivable are uncollectible. Adjusting entries (all dated December 31).

At December 31, Hawke Company reports the following results for its calendar year. Cash sales $ 160,000 Credit sales $ 400, 000 In addition, its unadjusted trial balance includes the following items. Accounts receivable $ 360,000 debit Allowance for doubtful accounts $ 2,900 debit Required: 1. Prepare the adjusting entry to record bad debts under each separate assumption. 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 4% of year - end accounts receivable are uncollectible. Adjusting entries (all dated December 31).

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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