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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,

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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 on. 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.) 3 of 20 The journal entry to record the write-off of accounts receivable during 2020 should include: OA Adebit to bed dette expense for $4.300 OB. Acred to slowance for doubts for $4.300 OC. A debit to accounts receivable for $4.300 OD Adebit to wlowance for doubtful counts for $4.300 Unsure 4 of 20 The journal entry to record the estimated bad debts expense for 2021 should include OA A debit to bad debis expense for $9,000 OB. Acredit to accounts receivable for $9.000 OC. A debit to bad debts expense for $22.800 OD. A debit to bad debits expense for $7,500 Unsure 5 of 20 The ending to the stone for det er OA $3.500 OBS OG $6,00 OD to determine window formato more 6 of 20 The counts receive turnover ratio for your 2021 OA 10.00 OB OC 20.0 OD32.62 Unsure 3 of 20 The journal entry to record the write-off of accounts receivable during 2020 should include: OA. A debit to bad debts expense for $4,300. OB. A credit to allowance for doubtful accounts for $4,300. OC. A debit to accounts receivable for $4,300. OD. A debit to allowance for doubtful accounts for $4,300, Unsure 4 of 20 The journal entry to record the estimated bad debts expense for 2021 should include: OA. A debit to bad debts expense for $9,000. O B. A credit to accounts receivable for $9,000. OC. A debit to bad debts expense for $22,800. OD. A debit to bad debts expense for $7,500 Unsure 5 of 20 The ending balance of the allowance for doubtful accounts at September 30, 2021 is: O A $3,200 OB. $3,600 OC. $6,800 OD. impossible to determine without additional information Unsure 6 of 20 The accounts receivable turnover ratio for fiscal year 2021 equals: OA. 10.60 OB 12.88 OC. 26.86 Unsure OD. 32.62

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