Required information The following information applies to th

Required information [The following information applies to the questions displayed below] At December 31, 2017, Hawke Company reports the following results for its calendar year. Cash sales Credit sales3,744,000 $1,955,500 In addition, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts $1,134,432 debit 25,080 debit 2. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31, 2017, balance sheet given the facts in part 1a Current assets: Accounts receivable $ 1,134,432 s: Allowance for doubtful accounts $ 1,134,432

Solution

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Unadjusted balance = 25080 Debit

Estimated balance ($1134432 × 7%) = 79410.24 Credit

Required adjustment = 104490.24 Credit

2)

Expense is 4% of credit sales: 149760

Transaction	Genetal Jouranl	Debit	Credit
a.	Bad debts expense	149760
	Allowance for doubtful accounts		149760
	( 3744000 * 0.04)
b	Bad debts expense	170985
	Allowance for doubtful accounts		170985
	( 5699500 * 0.03)
c	Bad debts expense	104490
	Allowance for doubtful accounts		104490