P6-7 Aging Accounts Receivable LO 6.4 LO 6.5 On September 30, 2019 (the end of its fiscal year), Lufkin Corporation reported accounts receivable of $331,750 and an allowance for doubtful accounts of $16,700. During fiscal 2020, the following transactions occurred: Credit sales (terms, n/EOM) Collections on accounts receivable Accounts receivable written off $2,017,800 1,956,000 16,200 On September 30, 2020, an aging of the accounts receivable balance indicated the following: Age Under 30 days 30-90 days 91-180 days 181-360 days Over 360 days Amount $169,250 100,000 55,900 38,200 14,000 $377,350 Estimated Percentage Uncollectible 0.8% 1.6 5.0 15.0 40.0 Required: 1. Prepare the journal entries necessary to record the credit sales, collections on account, write-off of accounts receivable, and bad debts expense for Lufkin for fiscal 2020. 2. What are Lufkin's September 30, 2020, balances in Accounts Receivable and in its Allowance for Doubtful Accounts, and how will they be disclosed on the September 30, 2020, balance sheet? 3. Next Level Compute Lufkin's receivables turnover in days, assuming a 365-day business year. What is your evaluation of its collection policies