UYJ7.4 Englehart Company sells two types of pumps. One is large and is for commercial use. The other is smaller and is used in residential swimming pools. The following inventory data is available for the month of March. \begin{tabular}{|c|c|c|c|} \hline \multirow[b]{2}{*}{ Residential Pumps } & \multirow[t]{2}{*}{ Units } & Price per Unit & \multirow[t]{2}{*}{ Total } \\ \hline & & & \\ \hline Inventory at Feb. 28: & 200 & $400 & $80,000 \\ \hline \multicolumn{4}{|l|}{ Purchases: } \\ \hline March 10 & 500 & $450 & $225,000 \\ \hline March 20 & 400 & $475 & $190,000 \\ \hline March 30 & 300 & $500 & $150,000 \\ \hline \multicolumn{4}{|l|}{ Sales: } \\ \hline March 15 & 500 & $540 & $270,000 \\ \hline March 25 & 400 & $570 & $228,000 \\ \hline Inventory at March 31: & 500 & & \\ \hline \multicolumn{4}{|l|}{ Commercial Pumps } \\ \hline Inventory at Feb. 28: & 600 & $800 & $480,000 \\ \hline \multicolumn{4}{|l|}{ Purchases: } \\ \hline March 3 & 600 & $900 & $540,000 \\ \hline March 12 & 300 & $950 & $285,000 \\ \hline March 21 & 500 & $1,000 & $500,000 \\ \hline \multicolumn{4}{|l|}{ Sales: } \\ \hline March 18 & 900 & $1,080 & $972,000 \\ \hline March 29 & 600 & $1,140 & $684,000 \\ \hline Inventory at March 31: & 500 & & \\ \hline \end{tabular} a. Based on the above transactions, determine the balance for (1) Accounts Receivable and (2) Allowance for Doubtful Accounts at December 31 , 2025. b. Prepare the current assets section of The Flatiron Pub's balance sheet at December 31, 2025. Analysis a. Compute Flatiron's current ratio and accounts receivable turnover for December 31, 2025. Use these measures to analyze Flatiron's liquidity. The accounts receivable turnover in 2024 was 4.37. b. Discuss how the analysis you did above of Flatiron's liquidity would be affected if Flatiron had transferred the receivables in a secured borrowing transaction. Principles Principles What is the conceptual basis for recording bad debt expense based on the percentage-of-receivables approach at December 31, 2025