Crane Company uses the percentage of sales approach to record bad debt expense for its monthly financial statements and the percentage of receivables approach for its year end financial statements. Crane Company has an October 31 hscal year end closes temporary accounts annually, and uses a perpetual inventory system Crane Company has no stated return policy On August 31, 2021, after completing its month-end adjustments, it had accounts receivable of $56,600, a credit balance of $2,300 in Allowance for Doubtful Accounts and bad debt expense of $7.500. In September and October, the following occurred: September 1 Sold $42,800 of merchandise on account the cost of the merchandise was $19.260. 2 A total of $700 of the merchandise sold on account was returned. The customers were issued credit memos. The cost of the merchandise was $300 and it was returned to inventory Collected $45.000 cash on account from customers Interest charges of $600 were charged to outstanding accounts receivable. 3 4 5 As part of the month-end adjusting entries, recorded bad debt expense of 2% of credit sales for the month October 1 Credit sales in the month were $48,600; the cost of the merchandise was $21,800 2 Received $270 cash from a customer whose account had been written off in July Collected $44.500 cash in addition to the cash collected in transaction 2. above, from customers on 3 account 5 Wrote off $5.700 of accounts receivable as uncollectible. Interest charges of $500 were charged to outstanding accounts receivable Recorded the year-end adjustment for bad debts. Uncollectible accounts were estimated to be 4% of accounts receivable For each of these transactions, indicate if the transaction has increased or decreased cash. Accounts Receivable Allowance for Doubtful Accounts Inventory. Total Assets, and Owner's Equity, and by how much Use the following format, in which the first one has been done for you as an example. (For the item which Indicate decreased, place a negative sign for parentheses) in front of the amount entered foreg.-1,525 or (1,525) and for the item which indicate No Effect enter O as amounts. Round answers to decimal places.c.3.5,275) Accounts Receivable Allowance for Doubtful Accounts Transaction Cash Sept S2 Accounts Receivable Allowance for Doubtful Accounts Transaction Cash Sept. 1 $42.800 2 $ 5 3 5 $ 5 $ $ $ 5 5 $ Oct 1 5 2 $ 5 5 3 S $ 5 4 $ $ 5 5 5 $ $ e Textbook and Media List of Accounts Show how accounts receivable will appear on the October 31, 2021 balance sheet