Answered

Westonci.ca offers quick and accurate answers to your questions. Join our community and get the insights you need today. Join our platform to connect with experts ready to provide precise answers to your questions in different areas. Explore comprehensive solutions to your questions from knowledgeable professionals across various fields on our platform.

Prepare the adjusting entry to record bad debts under each separate assumption.

a. bad debts are estimated to be 4% of credit sales.
b. bad debts are estimated to be 3% of total sales.
c. an aging analysis estimates that 7% of year-end accounts receivable are uncollectible.

Sagot :

anthougo

The preparation of the adjusting entries to record bad debts for Hawke Company under each separate assumption are as follows:

A) Bad Debts $169,790 Allowance for Doubtful Accounts $169,790

B) Bad Debts $189,173 Allowance for Doubtful Accounts $189,173

C) Bad Debts $102,935 Allowance for Doubtful Accounts $102,935

Data and Calculations:

A) Allowance for doubtful accounts = $142,320 ($3,558,000 x 4%)

Bad Debts Expense = $169,790 ($142,320 + $27,470)

B) Allowance for doubtful accounts = $161,703 ($3,558,000+ $1,832,100 x 3%)

Bad Debts Expense = $189,173 ($161,703 + $27,470)

C) Allowance for doubtful accounts = $75,465 ($1,078,074 x 7%)

Bad Debts Expense = $102,935 ($75,465 + $27,470)

Question Completion:

On December 31, Hawke Company reports the following results for its calendar year.      Cash sales        Credit sales

                             $1,832 100         $3,558,000

In addition, its unadjusted trial balance includes the following items. Accounts receivable $1.078.074 debit

Allowance for doubtful accounts $27,470 debit.

Learn more about allowances for doubtful accounts at https://brainly.com/question/26498002

Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. We hope our answers were useful. Return anytime for more information and answers to any other questions you have. We're glad you visited Westonci.ca. Return anytime for updated answers from our knowledgeable team.