Question

Chapter 7 Problems A Saved Required information [The following information applies to the questions displayed below.] Part 3 of 3 At December 31, Hawke Company reports the following results for its calendar year. 2.5 points Cash sales Credit sales $1,412,210 $3,177,000 In addition, its unadjusted trial balance includes the following items. eBook Accounts receivable Allowance for doubtful accounts $962,631 debit $ 22,440 debit Print 3. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet given the facts in part 1c. (Do not round intermediate calculations.) Current assets:

Answer 1

• Requirement 3, based on Part 1 c

Current Assets:
Accounts receivables	$962,631
Less: Allowance for Doubtful accounts ($962,631 x 6%)	$57,758
		$904,873

--Working for Requirement 1[c]

Transaction	Accounts title	Debit	Credit
[c]	Bad Debt Expense [($962631 x 6%) + $22440 debit balance existing]	$80,198
	Allowance for doubtful accounts		$80,198
	(to record bad debt expense)