1) As of December 31, Berra Company's balance sheet contains notes payable in the amount of $390,000. These notes are 120-day notes and are renewable for one additional 120-day period. Berra should classify these notes as

intermediate liabilities

long-term liabilities

current liabilities

deferred charges

2 )Lee Corporation operates a retail store in a state with an 8% sales tax. Lee records sales tax collected in the Sales Revenue account. Lee's unadjusted Sales Revenue for April totalled $2,535,405. Lee should post the following adjusting entry on April 30. All amounts are rounded to the nearest dollar.

Debit Sales Tax Payable $187,808; Credit Sales Revenue $187,808

Debit Sales Tax Payable $202,832; Credit Sales Revenue $202,832

Debit Sales Revenue $187,808; Credit Sales Tax Payable $187,808

Debit Sales Revenue $202,832; Credit Sales Tax Payable $202,832