SECTION 2 - Financial accounting (20% or approximately 24 minutes. 20 marks in total) Read the following information to answer questions 2.1 - 2.2. LA Fashion has credit sales of $6,400,000 for the financial year ending June 30, 2021, and estimates at the end of the financial year that five per cent of accounts receivable will not be received. Accounts receivable total $3,100,000. The corporation uses the allowance method to account for bad debts, based on the percentage of receivables approach. Question 2.1: During 2021 a customer defaults on a $18,000 balance related to goods purchased during 2021. The corporation determines that this amount will not be recoverable and removes it from their records. Identify the accounts used in the journal entry to remove the amount from their records (noting above, that the corporation uses the allowance method to account for bad debts). [ Select) > 18,000 [ Select] V 18,000 Question 22 2 pts Question 2.2 Using the percentage of receivables approach to calculate the amount of bad debt expense incurred, record the adjusting entry for the bad debt expense for the financial year end June 30, 2021. The credit balance in the "allowance for bad debts" account is $34,000 prior to the adjusting entry. [ Select) [ Select) [ Select) [ Select D Question 23 4 pts Question 2.3 LA Fashion uses the periodic inventory system. Record the journal entries required for the following three transactions (question 2.3 -2.5): On 1 April 2021. Carin purchased 75 containers of shirts for $54,000 cash and also paid $500 transportation costs in cash related to this purchase. Record the journal entry for LA Fashion: [Select 54,000 [Select) V 54,000 [ Select ]