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At December 31, 2017, Hawke Company reports the following results for its calendar year.
Cash sales$1,244,790
Credit sales 3,700,000
In addition, its unadjusted trial balance includes the following items.
Accounts receivable$1,121,100debit
Allowance for doubtful accounts 12,070debit
To recognize bad debts under each of the following independent assumptions.
Required:
Question 1. Prepare the adjusting entry for this company to recognize bad debts under each of the following independent assumptions.
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