December 31, Hawke Company reports the following results for its calendar year. ...
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Accounting
December 31, Hawke Company reports the following results for its calendar year.
| Cash sales | $ | 1,905,000 | |
| Credit sales | $ | 5,682,000 | |
In addition, its unadjusted trial balance includes the following items.
| Accounts receivable | $ | 1,270,100 | debit |
| Allowance for doubtful accounts | $ | 16,580 | debit |
Bad debts are estimated to be 1.5% of credit sales. Show how Accounts Receivable and the Allowance for Doubtful Accounts appear on its December 31 balance sheet.
Can you show how you get the answer because I was taking the credit cost $5,682,000 and multiplying it by 1.5 to get $85,230 and that's wrong? What am I missing? Thank you.
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