1) On February 7, 2021, Las Marias Shop purchased several inventory units at $30.00 each. The initial selling price was $40.00. The following table shows the changes in the sales price of these units until they were finally sold:

Additional markup $5.00

Canceling markup $5.00

markdown $6.00

Canceling markdown $2.00

Determine the final selling price of these inventory units: 27) a. $40.

b. $38. c. $30.d. $36.

2) On April 1, XYZ factored accounts receivable with value on books of $85,000 for $60,000 in cash. The transfer was made without responsibility. On April 1, XYZ:

a. will credit: Deferred interest expense for $25,000.

b. will debit: Loss on the sale of accounts receivable for $25,000.

c. will credit Accounts Receivable for $85,000.

d. will debit: Recourse liability debt for $25,000.