1, Venice corp maintains its accounting records on the cash basis but restateds its financial statements to the accural method of accounting. Venice had $120,000 in cash-basis pretax income for 2018. The following information pertains to Venice's operations for the years ended Decemeber 31,2018 and 2017: 2018 2017 $60,000 $40,000 Accounting receivable 20,000 Accounting payable 30,000 Under the accural method, what amount of income before taxes should Venice report on its Decemeber 31, 2018 income statement? 2, when the allowance method of recognizing uncollectible accounts is used, how would the collection of an account previously written off affect bad debt expense and the net realizable value of accounts receivable, repectively? The use of a purchase discounts lost account implies that the recorded cost of a purchased inventory item is its; Invoice price invoice price plus the purchase discount price Invoice price less the purchase discount allowable, when taken invoice price less the purchase discount allowable, whether or not taken. 3. A. B. C. D. On January 1,2015, Oxford Company finished consultation services and accepted in exchangea promissory note with a face value of $600,000 and a due date of December 31, 2017. The stated rate of interest is 5% with interest receivable at the end of each year through 12/31/17. Assume an effective interest rate of 10% is implicit in the agreed-upon price. The effective amortization method is used. 4 Oxford's journal entry on 1/1/15 to record service revenue will include:s 600,000 x5% A credit to Notes Receivable for $600,000 A credit to Service Revenue for $600,000 A credit to Discount on Notes Receivable for $74,603. d) A debit to Service Revenue for $547,936 e) A credit to Discount on Notes Receivable for $52064 () 0do, , ,1 The 12/31/16 balance of the Discount on Note Receivable account will be