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1 Mazie Supply Co. uses the percent of accounts receivable method. On December 31, it has outstanding accounts receivable of $105,000, and it estimates that 5% will be uncollectible. 2.5 points Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has: (a) a $1,785 credit balance before the adjustment. (b) a $525 debit balance before the adjustment. Answer is complete and correct. No Transaction General Journal Debit Credit 1 (a) 3,465 Bad debts expense Allowance for doubtful accounts 3,465 2 (b) 5,775 Bad debts expense Allowance for doubtful accounts 5,775 Required information [The following information applies to the questions displayed below.] At December 31, Hawke Company reports the following results for its calendar year. Cash sales Credit sales $ 2,158,120 $3,590,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts $1,087,770 debit $ 22,690 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. Current assets: 1 Mazie Supply Co. uses the percent of accounts receivable method. On December 31, it has outstanding accounts receivable of $105,000, and it estimates that 5% will be uncollectible. 2.5 points Prepare the year-end adjusting entry to record bad debts expense under the assumption that the Allowance for Doubtful Accounts has: (a) a $1,785 credit balance before the adjustment. (b) a $525 debit balance before the adjustment. Answer is complete and correct. No Transaction General Journal Debit Credit 1 (a) 3,465 Bad debts expense Allowance for doubtful accounts 3,465 2 (b) 5,775 Bad debts expense Allowance for doubtful accounts 5,775 Required information [The following information applies to the questions displayed below.] At December 31, Hawke Company reports the following results for its calendar year. Cash sales Credit sales $ 2,158,120 $3,590,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable Allowance for doubtful accounts $1,087,770 debit $ 22,690 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. Current assets

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