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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 decide to offer some customers credit terms of 30 days. Total sales for the year ended September 30, 2020 were $900,000, of which $250,000 were on credit. Five customers declared bankruptcy or left town without a forwarding address, and their accounts (which totaled $4,300) were written off The balance of the accounts receivable, after 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 totaling $5,400 were written off, 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 fiscal years, 2020 and 2021. Industry statistics indicate that bad debts average 3% of credit sales. (Hint: use T-accounts to keep track of the various details.) 4 of 20 2 Marks 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. A credit 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

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