Please answer the following question At December 31, 2015, Hawke Company reports
ID: 2580872 • Letter: P
Question
Please answer the following question
At December 31, 2015, Hawke Company reports the following results for its calendar year. D week 6 Assessment Prot G Chegg Study I Guided S X C O ezto.mheducation.com/hm.tpx?--0.7050764721763371_1511795515873 Required: 1. Prepare the adjusting entry for this company to recognize bad debts under each of the following independent assumptions 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 6% of year-end accounts receivable are uncollectible Adjusting entries (all dated December 31, 2015). (Round your final answers to the nearest whole dollar.) View transaction list Journal entry worksheet Bad debts are estimated to be 3% of credit sales. Note: Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View general journal 10:13 AM 11/27/2017
Explanation / Answer
a Bad debts expense 107790 =3593000*3% Allowance for doubtful accounts 107790 b Bad debts expense 113338 =(2073890+3593000)*2% Allowance for doubtful accounts 113338 c Bad debts expense 82911 =(1088679*6%)+17590 Allowance for doubtful accounts 82911