OD 20. you acquired a grocery store to compete with the large parcurychom you decide to other sour customers credit forms of 30 days. The aim bu hey 0 5900.000, of which $250.000 were on credt Fow customers declared bekruptcy or left town who a borwarders, and we account wachten Dance of the accounts receive after the will off was $24.700 seal sees for the next tocat you were 31,000,000, of which $700.000 were for cimh Sox cantomnes accounts totaling 55,400 were written olit wed the entry want to 31,900 September 30, 2021 Assume te cuestions to that the percentage of credit sales method is used to estimate bad debts expense for both fiscal years 2020 and 2021. Industry standabad O of credit ales in use account to keep track of the various do) orquestion 7 to that the aging of accounts receivable methods used to estimabad open you are the bacal years 2020 and 2021 (two account to koop track of the various deats) Analysis of Aged Accounts Receivable Not Yet Past Due Due 1 - 60 Current Over 60 days Total daya Accounts receivable, $18.400 $4,700 $1,600 9/30/2020 $24,700 Accounts receivable, 9/30/2021 24,300 5,600 2,000 $31.900 Estimated uncollectible 10% 40% 75% The journal entry to record the estimated bad debts expense for 2021 should include: OA A debit to bad debts expense for $770. 08 A credit to allowance for doubtful accounts for 85,690 OC Adebit to bad debts expense for $1.250 OD Adebit to bad debts expense for $6,650 Which of the following statements is incorrect when arguing in favour of using the aging of accounts receivable method instead of the percentage of credit sales method? O A The aging of accounts receivable method generally results in a more accurate valuation of the net accounts receivable on the statement of option OB The aging of accounts receivable method matches bad debts expense with credit sales in the same period O The aging of accounts receivable method takes into account past experience by adjusting for previous under or overstatement of the allowance Account OD The aging of accounts receivable method is more difficult to implement than the percentage of credit sales method Based on your analysis of aged accounts receivable, what should be the balance of the allowance for doubtl accounts at September 30 20202 OAS4,320 OB 58,170 OC$11.000 ODS770 OE None of the other amounts moeroter 2019, you acquired w grocery store to compete with the large grocery chains, you decide to other some customers croat terms of 30 din tone per most 05900.000, of which 250,000 were on credit Five customers declared bankruptcy or her tow without a forwarding address and her courses balance of the accounts receive after the wide off was $24.700 Total sales for the next fiscal you were $1,000,000, of which $700,000 were for cash Slo customers accounts totating 55,400 were written om, and the writing to come. 35100 September 30, 2021 Assuno lo constions 3 to 6 that the percentage of credit sales mothod is used to estate bad debts expense for both fiscal years, 2020 and 2021 busty standard 31 of credit sales interaccounts to keep track of the various details) Andura toy questions? Stiat the aging of accounts receivable method is used to estimate bad dots pense. You prepare the following analysis to accoarta aceasta hayas 2020 and 2021 (Hintoso Taccounts to keep track of the various details) Analysis of Aged Accounts Receivable Not Yet Past Due Due 1-60 Current Over 60 days days Total Accounts receivable, $18,400 9/30/2020 $4,700 $1,600 $24.700 Accounts receivable, 24,300 5,600 2.000 9/30/2021 531,900 Estimated uncollectible 10 40% 75% The journal entry to record the estimated bad debts expense for 2021 should include: OA Adebit to bad debts expense for $770 OB. Acredit to allowance for doubtful accounts for $5,690 OC A debit to bad debts expense for $1,250 OD Adebit to bad debts expense for $6,650 Which of the following statements is incorrect when arguing in favour of using the aging of accounts receivable method instead of the percentage of credit sales method? O A The aging of accounts receivable method generally results in a more accurate valuation of the net accounts receivable on the statement of finances position OB The aging of accounts receivable method matches bad debts expense with credit sales in the same period OC. The aging of accounts receivable method takes into account past experience by adjusting for previous under or overstatement of the town OD. The aging of accounts receivable method is more difficult to implement than the percentage of credit sales method