1. Ofimundo, S.A., carried out the transactions described below, related to the merchandise it sells, mainly office furniture. Records in the journal the entries corresponding to a perpetual inventory recording system.

On February 2, 500 chairs were purchased on credit for later sale, with a unit value of $160 each. The purchase conditions were 3/10, n/30.

On February 4, 50 of the chairs purchased on the 2nd were returned due to manufacturing defects.

On February 10, the pending account for the purchase made on February 2 was paid.

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Also, help me out with this.

2. To encourage customers to pay their outstanding accounts soon, companies use:

a) Discounts on sales. b) Commercial discounts. c) Discounts on purchases. d) Returns on purchases.

3. The expenses that are directly related to the sales function, such as advertising, sales freight and others, are called:

a) Operating expenses. b) Selling expenses. c) Administration expenses. d) Miscellaneous expenses.