3. Thatch Fencing Company sold $46,000 of fencing to Southeast Water District #45 on April 12 of the current year with terms 1/15, n/60. Thatch uses the gross method of accounting for cash discounts. What entry would Thatch make on April 23, assuming the customer made the correct payment on that date? A. Cash 46,000 Sales discounts 460 Accounts receivable 46,000 Interest revenue 460 B. 45,540 Cash Sales discounts 460 Accounts receivable 46,000 C. Cash 46,000 Accounts receivable 45,540 Sales 460 D. Cash 46,000 Accounts receivable 46,000 4. Harp Co. uses a periodic inventory system. Beginning inventory on January 1 was overstated by $32,000, and its ending inventory on December 31 was understated by $62,000. These errors were not discovered until the next year. As a result, Harp's cost of goods sold for this year was A. understated by $94,000 B. overstated by $30,000 C. overstated by $94,000. D. understated by $30,000. 8. On January 1, 2015, Ferret, Inc., adopted the dollar-value LIFO method. The inventory cost on this date was $100,000. The 2015 ending inventory, valued at year-end costs, was $126,000. The relative cost index for this inventory in 2015 was 1.05. Suppose that Ferret's 2016 ending inventory, valued at year-end costs, was $143,000 and that the relative cost index for this inventory in 2016 was 1.10. In determining the inventory balance, which should Ferret report in its 12/31/16 balance sheet? A. An additional layer of $11,000 is added to the 1/1/16 balance. B. An additional layer of $22,000 is added to the 1/1/16 balance. C. No additional layers are needed for the 1/1/16 balance. D. An additional layer of $23,000 is added to the 1/1/16 balance