3. On February 10, Company Z sold inventory for $22,000 with terms 2/15, n/30. On February 27, the company received a check for the balance due. Record the journal entry on February 27. Assume the company uses the gross method.

Cash 22,000 Sales Discounts Forfeited 440 Accounts Receivable 21,560

Cash 22,000 Accounts Receivable 22,000

Cash 21,560 Sales Discounts 440 Accounts Receivable 22,000

Cash 21,560 Accounts Receivable 21,560

4.

Company A issued a note with a 10% interest rate. The market rate for a note with similar risk is 9%. The note is issued at:

Premium

Face value

Discount

Depends on different factors such as the number of periods