$5,000 were to be written off at the financial year end of 31 August 2020. Based on past experience, Cheers Co. wishes to set the allowance at 20% of the receivables. Which of the following are the correct journal entries to record the impairment loss on receivables for the year ended 31 August 2020? $1,630 1) DR Impairment loss on Receivables $1,630 CR Allowance for Impairment on Receivables 2) DR Allowance for Impairment on Receivables $1,630 CR Impairment on Receivables O3) DR Impairment loss on Receivables $2,310 CR Allowance for Impairment on Receivables 4) DR Allowance for Impairment on Receivables $2,310 CR Impairment on Receivables $1,630 $2,310 $2,310 The Allowance for Impairment on Receivables in the accounts of Cheers Co. at 1 September 2019 was $10,500 and the Receivables balance was $230,650. During the year, the business made credit sales of $99,100. A cash discount of $25,400 was given to credit customers for prompt payment. Cash receipt of $280,000 was also received from these trade receivables during the financial year. $5,000 were to be written off at the financial year end of 31 August 2020. Based on past experience, Cheers Co. wishes to set the allowance at 20% of the receivables. Which of the following are the correct journal entries to record the impairment loss on receivables for the year ended 31 August 2020? $1,630 O 1) DR Impairment loss on Receivables $1,630 CR Allowance for Impairment on Receivables 2) DR Allowance for Impairment on Receivables $1,630 CR Impairment on Receivables 3) DR Impairment loss on Receivables $2310 $1,630 101