$8,000 with credit terms 2/10, n/30. Old Mesilla uses the net method of accounting for cash discounts. 1. On November 10th of the current year, Old Mesilla Industries sold materials to a customer fo t entry would Old Mesilla make on December 10th, assuming the correct payment was received on that date? A. Cash 8,000 7,840 160 Accounts receivable Discounts revenue B. Cash 8,000 Accounts receivablc Sales discounts forfeited 7,840 160 C. Cash 8,160 Accounts receivable Sales discounts forfeited 8,000 160 D. Cash 8,000 Accounts receivable 8,000 2. Which of the following is not an indicator that control of a good has transferred from the seller to the buyer A. The buyer has an obligation to pay the seller. B. The buyer has placed an order for the good. C. The buyer has legal title. D. The buyer has physical possession. E. The buyer has assumed the risks and rewards of ownership. 3. For a typical manufacturing company, revenue recognition will generally occur when: A. The product is delivered. B. An order is received C. Production is completed. D. Payment is received. 4. Selling your accounts receivable to a financial institution is called: A. Securitization B. Secured borrowing C. Factoring D. None of the above