At December 31, 2013, Hawke Company reports the following results for its calendar year. [Solved]

3.Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31, 2013, balance sheet given the facts in part 1c.

3.Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31, 2013, balance sheet given the facts in part 1c.

a. Bad debts are estimated to be 1.5% of credit sales.
b. Bad debts are estimated to be 1% of total sales.
c. An aging analysis estimates that 5% of year-end accounts receivable are uncollectible.

Current assets:
Accounts receivable $1,270,100
Less: Allowance for doubtful accounts 63,505 $1,206,595

Bad debts expense 85,230
Allowance for doubtful accounts 85,230

b. Bad debts expense 75,870
Allowance for doubtful accounts 75,870

c. Bad debts expense 80,085
Allowance for doubtful accounts 80,085

Current assets:
Accounts receivable $1,270,100
Less: Allowance for doubtful accounts 63,505 $1,206,595

Current assets:
Accounts receivable $1,270,100
Less: Allowance for doubtful accounts 68,650 $1,201,450

Bad debts expense 85,230
Allowance for doubtful accounts 85,230

Current assets:
Accounts receivable $1,270,100
Less: Allowance for doubtful accounts 63,505 $1,206,595

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