At December 31, Hawke Company reports the following results for its calendar year.
Cash sales $ 1,905,000 Credit sales $ 5,682,000 In addition, its unadjusted trial balance includes the following items.
Accounts receivable $ 1,270,100 debit
Allowance for doubtful accounts $ 16,580 debit
Required:
1. Prepare the adjusting entry to record bad debts under each separate assumption.
Bad debts are estimated to be 1.5% of credit sales.
Bad debts are estimated to be 1% of total sales.
An aging analysis estimates that 5% of year-end accounts receivable are uncollectible.
At December 31, Hawke Company reports the following results for its calendar year.
Cash sales $ 1,905,000 Credit sales $ 5,682,000 In addition, its unadjusted trial balance includes the following items.
Accounts receivable $ 1,270,100 debit
Allowance for doubtful accounts $ 16,580 debit
2. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet given the facts in part 1a.
At December 31, Hawke Company reports the following results for its calendar year.
Cash sales $ 1,905,000 Credit sales $ 5,682,000 In addition, its unadjusted trial balance includes the following items.
Accounts receivable $ 1,270,100 debit
Allowance for doubtful accounts $ 16,580 debit
3. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet given the facts in part 1c.
