In October 2019, you acquired a grocery store. To compete with the large grocery chains, you decide to offer some customers credit terms of 30 days. Total sales for the year ended September 30, 2020 were $900,000, of which $250,000 were on credit. Five customers declared bankruptcy or left town without a forwarding address, and their accounts (which totaled $4,300) were written off. The balance of the accounts receivable, after the write off, was $24,700. Total sales for the next fiscal year were $1,060,000, of which $760,000 were for cash. Six customers' accounts totaling $5,400 were written off, and the ending balance in the accounts receivable was $31,900 as at September 30, 2021. Assume for questions 3 to 6 that the percentage of credit sales method is used to estimate bad debts expense for both fiscal years, 2020 and 2021. Industry statistics indicate that bad debts average 3% of credit sales. (Hint: use T-accounts to keep track of the various details.) Assume for questions 7 to 9 that the aging of accounts receivable method is used to estimate bad debts expense. Y prepare the following analysis of aged accounts receivable at the end of the fiscal years, 2020 and 2021. (Hint: use T- accounts to keep track of the various details.) Analysis of Aged Accounts Receivable Not Yet Past Due Due 1-60 Over 60 Current Total days days Accounts receivable, 9/30/2020 $18,400 $4,700 $1,600 $24,700 Accounts receivable, 24,300 5,600 2,000 $31,900 9/30/2021 Estimated % uncollectible 10% 40% 75% 7 of 20 N Based on your analysis of aged accounts receivable, what should be the balance of the allowance for doubtful accounts at September 30, 2020? O A $4,920. OB. $6,170. OC. $11,090. O D. $770. O E. None of the other amounts