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Use the following information to answer questions 3 to 9: In October 2019. you acquired a grocery store. To compete with the large grocery chains, you the days. Total sales for the year ended September 30, 2020 were $900,000, of which $250,000 wonin or left town without a forwarding address, and their accounts (which totaled $4,300) were willen Theater the write off, was $24.700. Total sales for the next fiscal year were $1,060,000, of which $760,000 were for cash. Six customers accounts tetang US stan, and the ending balance in the accounts receivable was $31,900 as at September 30,2021 Assume for questions 3 to 6 that the percentage of credit sales method is used to estimate bad debts expense for both to yours, 2021. Industry statistics indicate that bad debts average 3% of credit sales. (Hint: Uso T-accounts to keep track of the various detail) 3 of 20 The joumal entry to record the write-off of accounts receivable during 2020 hores DA A debit to bad debts expers for $4.300 OB A credit to allowance for doubtful accounts for $4,300 OC A debit to accounts receivable for $4,300 OD. A debit to allowance for doubtful accounts for $4,300 Unsure 4 of 20 The journal entry to record the estimated bad debts expense for 2021 should include: OA A debit to bad debts expense for $9,000 OB. Acredit to accounts receivable for $9.000 OC. A debit to bad debts expense for $22,800. OD. A debit to bad debts expense for $7,500 Unsure OB 12.30 OC 20.06 OD 32.62 Unsure Assume for questions 7 to 9 that the aging of accounts receivable method is used to estimated sex analysis of aged accounts receivable at the end of the fiscal years, 2020 and 2021. (Hint: use Taccounts to know Analysis of Aged Accounts Receivable Not Yet Past Due Due 1-60 Over 60 Current Total days days Accounts receivable, S18,400 $4,700 $1,600 S24,700 9/30/2020 Accounts receivable, 24.300 5.600 2,000 $31.900 9/30/2021 10% 40% 75% Estimated % uncollectible 5 of 20 The ending balance of the allowance for doubtful accounts at September 30, 2021 OA $3200 OB $3,000 OC$6,800 OD impossible to determine without additional information Unsure 6 of 20 The accounts receivable turnover ratio for fiscal year 2021 equals OA 10.60 OB 12.88 OC 26.86 OD 32.62 Unsure

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