At the beginning of the year, accounts receivable were $154,000 and the allowance for bad debts was $12,500. During the year, sales (all on account) were $610,000, cash collections were $590,000, bad debts expense totaled $17,200, and $13,000 of accounts receivable were written off as bad debts. Required: Calculate the balances at the end of the year for the Accounts Receivable and Allowance for Bad Debts accounts. (Hint: Use T- accounts to analyze each of these accounts, plug in the amounts that you know, and solve for the ending balances.) Accounts receivable Allowance for bad debts Ending balance Mower-Blower Sales Co. started business on January 20, 2019. Products sold were snow blowers and lawn mowers. Each product sold for $350. Purchases during 2019 were as follows: Blowers Mowers January 21 17 @ $209 February 3 36@ 194 February 28 30 @ 192 March 13 24 @ 195 April 6 17 @ $206 May 22 June 3 42@ 212 39@ 218 69 @ 227 June 20 August 15 November 7 September 20 18 @ 212 17@ 206 21@ 209 The December 31, 2019, inventory included 7 blowers and 22 mowers. Assume the company uses a periodic inventory system. Required: a-1. Compute ending inventory valuation at December 31, 2019, under the FIFO and LIFO cost flow assumptions. Blowers Mowers FIFO LIFO a-2. Is there any difference in valuation under FIFO and LIFO. Yes No b. If the cost of mowers had increased to $245 each by December 1, and if management had purchased 30 mowers at that time and if it wants to minimize taxes, which cost flow assumption was probably being used by the firm? O LIFO FIFO