Assume that the business in Exercise 6-9 maintains a perpetual inventory system. Determine the cost of goods sold for each sale and the inventory balance after each sale, assuming the last-in, first-out method. Present the data in the form illustrated in Exhibit 4.

Exhibit 4

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Allowance Method Direct Write-Off Method 20Y6 Bad Debt Expense Mar. Allowance for Doubtful Accounts 3,650 3,650 Accounts Receivable-C. York Accounts Receivable-C. York 3,650 3,650 Cash 2,250 Cash Apr. 12 2,250 Bad Debt Expense Allowance for Doubtful Accounts 3,250 3,250 Accounts Receivable-Cary Bradshaw Accounts ReceivableCary Bradshaw 5,500 5,500 Accounts Receivable-C. York June Accounts Receivable-C. York 22 3,650 3,650 Bad Debt Expense 3,650 Allowance for Doubtful Accounts 3,650 Cash Cash 22 3,650 3,650 Accounts Receivable-C. York Accounts Receivable-C. York 3,650 3,650 Bad Debt Expense Sept. Allowance for Doubtful Accounts 6,445 6,445 Accounts Receivable-Jason Bigg Accounts Receivable-Steve Bradey 1,100 Accounts Receivable-Jason Bigg 1,100 Accounts Receivable-Steve Bradey 2,220 2,220 Accounts Receivable-Samantha Accounts Receivable-Samantha Neeley Neeley 775 775 Accounts Receivable-Stanford Accounts Receivable-Stanford Noonan Noonan 1,360 1,360 Accounts Receivable–Aiden Wyman Accounts Receivable-Aiden Wyman 990 990 No Entry Bad Debt Expense Dec. 31 42,500 Allowance for Doubtful Accounts 42,500 Uncollectible accounts estimate ($3,400,000 x 0.0125 = $42,500).