Required information In October, Nicole eliminated all existing inventory of cosmetic items. The trouble of ordering and tracking each product line had exceeded the profits earned. In December, a supplier asked her to sell a prepackaged spa kit. Feeling she could manage a single product line, Nicole agreed. Nicole's Getaway Spa (NGS) would make monthly purchases from the supplier at a cost that included production costs and a transportation charge. NGS would keep track of its new inventory using a perpetual inventory system. On December 31, NGS purchased 20 units at a total cost of $5.70 per unit. Nicole purchased 50 more units at $7.70 in February. In March, Nicole purchased 20 units at $9.70 per unit. In May, 70 units were purchased at $9.50 per unit. In June, NGS sold 70 units at a selling price of $11.70 per unit and 60 units at $11.30 per unit. 3. Calculate the inventory turnover ratio, using the inventory purchased on December 31 as the beginning inventory. (Round your answers to 2 decimal places.) Inventory Turnover Ratio Numerator Cost of Goods Sold Denominator Average Inventory O The following transactions occurred over the months of September to December at Nicole's Getaway Spa (NGS) Sold spa merchandise to Ashley Welch Beauty for $1,550 on account; the cost of these goods to NGS was $800 Sold merchandise to Kelly Fast Nail Gallery for $350 on account; the cost of these goods to NGS was $150 Sold merchandise to Raea Gooding Wellness for $200 on account; the cost of these goods to NGS was $140 Received $1,050 from Ashley Welch Beauty for payment on its account. September October November December 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 $42 (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 $750, and net sales for the current year are $8,500. 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