Question 1 Wagner Inc. had total sales of $2,600,000 in 2023, of which $80,000 were sales...

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Question 1 Wagner Inc. had total sales of $2,600,000 in 2023, of which $80,000 were sales returns and allowances. The company also paid 4% of its total sales as commissions to its salespeople. Out of the total sales, 40% were cash sales. However, only 25% of the sales returns and allowances came from cash sales. The company estimated its bad debts expense for the year based on the age of its account receivables, and it was $15,000. The net amount that the company expected to collect from its account receivables was $100,000 at the beginning of 2023 and $125,000 at the end of 2023, before accounting for write-offs (see below) and bad debts expense. Required (Journal entries are not required) 1. Assume that on December 31, 2023, $10,900 of account receivables are written off and the appropriate adjusting entry for bad debts expense is also made. How much was the account receivables turnover ratio for 2023? Round your calculation to two decimal places. [4 points] 2. Assume that on December 31, 2023, only $2,900 of account receivables are written off and the appropriate adjusting entry for bad debts expense is also made. Does the change in the amount of account receivables written off affect the account receivables turnover ratio for 2023? Explain. [2 points] Question 1 Wagner Inc. had total sales of $2,600,000 in 2023, of which $80,000 were sales returns and allowances. The company also paid 4% of its total sales as commissions to its salespeople. Out of the total sales, 40% were cash sales. However, only 25% of the sales returns and allowances came from cash sales. The company estimated its bad debts expense for the year based on the age of its account receivables, and it was $15,000. The net amount that the company expected to collect from its account receivables was $100,000 at the beginning of 2023 and $125,000 at the end of 2023, before accounting for write-offs (see below) and bad debts expense. Required (Journal entries are not required) 1. Assume that on December 31, 2023, $10,900 of account receivables are written off and the appropriate adjusting entry for bad debts expense is also made. How much was the account receivables turnover ratio for 2023? Round your calculation to two decimal places. [4 points] 2. Assume that on December 31, 2023, only $2,900 of account receivables are written off and the appropriate adjusting entry for bad debts expense is also made. Does the change in the amount of account receivables written off affect the account receivables turnover ratio for 2023? Explain. [2 points]