1. ABC Co. is a small fruit and vegetable grocer. ABC Co. is concerned that sales have been down over the past three quarters. As the company accountant, you decide to perform some analysis to uncover the source of the problem. You gather the following data from the accounting records by quarter:

Quarter	COGS	Beginning Inventory	Ending Inventory
1	$300,000	$40,000	$20,000
2	$455,000	$20,000	$92,500
3	$530,000	$92,500	$120,200

Required: Use the information above to draw some conclusions using inventory turnover and days sales turnover to discuss the financial impact of your analysis on the management.

1. Prepare journal entries to record these transactions:

Mar 21 Accepted a $6,200, six month, 4% note dated today from Brad in granting a time extension on his past-due account.

Sep 21 Brad dishonoured his note when presented for payment.

Dec 31After exhausting all legal means of collection, wrote off Brad's account against the allowance for doubtful accounts.