CC8-1 (Algo) Accounting for Receivables and Uncollectible Accounts [LO 8-2, LO 8-4] The following transactions occurred over the months of September to December at Nicole's Getaway Spa (NGS). September Sold spa merchandise to Ashley Welch Beauty for $1,700 on account, the cost of these goods to NGs was \$860. October Sold merchandise to Kelly Fast Nail Gallery for $410 on account; the cost of these goods to NGs was $180. Dovember sold merchandise to Raea Cooding Wellness for $260 on account; the cost of these goods to NGS was $170. Required: 1. Prepare journal entries for each of the transactions. Assume a perpetual inventory system. 2. Estimate the Allowance for Doubtful Accounts required at December 31 , assuming the only receivables outstanding at December 31 arise from the transactions listed above. NGS uses the aging of accounts receivable method with the following uncollectible rates: one month, 2\%; two months, 5\%; three months, 20\%; more than three months, 35%. 3. The Allowance for Doubtful Accounts balance was $45 (credit) before the end-of-period adjusting entry is made. Prepare the journal entry to account for the Bad Debt Expense. 4. Assume the end of the previous year showed net accounts receivable of $780, and net sales for the current year are $8,800. Calculate the accounts receivable turnover ratio. 5. Audrey's Mineral Spa has an accounts receivable turnover ratio of 8.0 times. How does NGS compare to this competitor? Prepare joumal entries for each of the transactions. Assume a perpetual inventory system. (If no entry is required for a transactionfevent, select "No Joumal Entry Required" in the first account field.) Jnurnal antru unmbabnat Journal entry worksheet