In large skillet, over medium-high heat, cook bacon until crisp.
Remove bacon with slotted spoon.
Reserve 2 tablespoons drippings.
In same skillet, saute mushrooms in reserved drippings for 5 minutes or until tender.
Stir in steak sauce, sherry and bacon; bring to a boil.
Reduce heat; simmer 5 minutes.
Serve hot with cooked beef, burgers or poultry.