At December 31, Hawke Company reports the following results for its calendar year. Cash sales $ 1,738,010 Credit sales $ 3,634,000 In addition, its unadjusted trial balance includes the following items. Accounts receivable $ 1,101,102 debit Allowance for doubtful accounts $ 19,860 debit Required: 1. Prepare the adjusting entry to record bad debts under each separate assumption. Bad debts are estimated to be 4% of credit sales. Bad debts are estimated to be 3% of total sales. An aging analysis estimates that 7% of year-end accounts receivable are uncollectible.