Read the following information to answer questions 2.1 -2.2. LA Fashion has credit sales of $6,400,000 for the financial year ending June 30, 2021, and estimat at the end of the financial year that five per cent of accounts receivable will not be received. Accounts receivable total $3,100,000. The corporation uses the allowance method to account for bad debts, based on the percentage of receivables approach. Question 2.1: During 2021 a customer defaults on a $18,000 balance related to goods purchased during 2021 The corporation determines that this amount will not be recoverable and removes it from their records. Identify the accounts used in the journal entry to remove the amount from their record (noting above, that the corporation uses the allowance method to account for bad debts). Select] 18,000 Select) 18,000 Question 22 Question 2.2 Using the percentage of receivables approach to calculate the amount of bad debt expense incu record the adjusting entry for the bad debt expense for the financial year end June 30, 2021. The credit balance in the "allowance for bad debts" account is $34,000 prior to the adjusting entry. Select] [ Select Select] [ Select) Question 23 Question 2.3 LA Fashion uses the periodic inventory system. Record the journal entries required for the follo three transactions (question 2.3 -2.5): On 1 April 2021. Carin purchased 75 containers of shirts for $54,000 cash and also paid $500 transportation costs in cash related to this purchase. Record the journal entry for LA Fashion: Select] 54,000 Select] 54,000 Select 500 Select) 500 Use the information in question 2.3 (above) when answering question 2.4 (below). Question 2.4 On 10 April, LA Fashion determined that six containers of shirts have quality defects, which cc $7.500, so they were returned to the seller for a cash refund (recall that LA Fashion uses the inventory system). Record the journal entry for LA Fashion: Select) 7.500 Select 7,500 Question 25 Question 2.5 On April 15 LA Fashion purchased $15,000 of inventory on account. The shirts were purchased the credit terms 4/10, n/30. LA Fashion paid for the shirts on 20 April . Record the journal entry for LA Fashion to recognise the payment of the inventory on 20 April (recall that LA Fashion uses the periodic inventory system): Debit: Select) $15,000 $ Select] Credit: Cash $ Credit: Select] Select ] Question 26 2pts Question 2.6 LA Fashion records indicate that the balance in their cash account (in the ledger) at the end of the month is $3,918. Comparing the corporation's records with the monthly bank statement reveals several additional cash transactions, such as a $40 bank service charge, a $500 note receivable collected by the bank plus interest earned of $25, and an NSF (dishonoured) cheque for $250 from a customer. There are also deposits in transit of $3,022, and three outstanding cheques totalling $597 Determine the corporation's adjusted cash balance. NOTE: Enter only the number of dollars, do not enter the dollar, "$". symbol. Therefore if your answer is "$10", enter only "10". 4 pts uoctie 27 Prepare the journal entries necessary to adjust the cash account balance based on the inform provided in Question 2.6. (above). Select 40 Select) 40 Select) 500 Select) 500 Select 25 Select] 25 Select] 250 250 Select