At December 31, Hawke Company reports the following results for its calendar year. Cash sales $760,000 Credit sales $ 1,900,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts $570,000 debit $ 6,800 debit Required: 1. Prepare the adjusting entry to record bad debts under each separate assumption. a. Bad debts are estimated to be 2% of credit sales. b. Bad debts are estimated to be 1% of total sales. c. An aging analysis estimates that 6% 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 $760,000 Credit sales $ 1,900,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts $570,000 debit $ 6,800 debit Required: 1. Prepare the adjusting entry to record bad debts under each separate assumption. a. Bad debts are estimated to be 2% of credit sales. b. Bad debts are estimated to be 1% of total sales. c. An aging analysis estimates that 6% of year-end accounts receivable are uncollectible. Adjusting entries (all dated December 31).

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 10RE: On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to...

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