1) What is the difference between the Gross method and Net method? Le Co., sold $100,000 on December 26, 2019 to a client with the sales discount terms 3/10 net 40. What do the terms mean? If the client paid on January 4, 2020 which method (Gross or Net) makes higher profit for 2019? What is the journal entry to record the cash received on January 4, 2020 under the Gross method and under the Net method? 2) Pearl Co., has following information, you have to classify which items are cash, cash equivalent? a) Commercial savings account of $600,400 and a commercial checking account balance of $842,500 are held at First National Bank of Yojimbo. b) Money market fund account held at Volonte Co. (a mutual fund organization) permits Pearl to write checks on this balance, $5,316,200. c) Travel advances of $194,900 for executive travel for the first quarter of next year (employee to reimburse through salary reduction). a) Commercial savings account of $600,400 and a commercial checking account balance of $842,500 are held at First National Bank of Yojimbo. b) Money market fund account held at Volonte Co. (a mutual fund organization) permits Pearl to write checks on this balance, $5,316,200. c) Travel advances of $194,900 for executive travel for the first quarter of next year (employee to reimburse through salary reduction) d) A bank overdraft of $121,100 has occurred at one of the banks the company uses to deposit its cash receipts. At the present time, the company has no deposits at this bank. e) The company has two certificates of deposit, each totaling $630,800. These CDs have a maturity of 120 days. f) Currency and coin on hand amounted to $7,988. g) Pearl has purchased $1,912,200 of commercial paper of Sergio Leone Co. which is due in 60 days