Use the following information to answer questions 3 to 9: 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.)

The journal include: entry to record the write-off of accounts receivable during 2020 should O A. A debit to bad debts debts expense for $4,300.L O B. A credit to allowance for doubtful accounts for $4,300. O C. A debit to accounts receivable for $4,300. O D. A debit to allowance for doubtful accounts for $4,300.

The journal entry to record the estimated bad debts expense for 2021 should include: A. A debit to bad debts expense for $9,000. B. A credit to accounts receivable for $9,000. C. A debit to bad debts expense for $22,800. D. A debit to bad debts expense for $7,500.

The ending balance of the allowance for doubtful accounts at September 30, 2021 is: O A. $3,200. O B. $3,600. O C. $6,800. O D. impossible to determine without additional information.

The accounts receivable turnover ratio for fiscal year 2021 equals: A. 10.60 B. 12.88 C. 26.86 D. 32.62