ACCT 2110 CE #3 Item a: The adjusted trial balance of Entity B included the following selected accounts: Debit Credit Sales Revenue $645,000 Sales Returns and Allowances $ 50,000 Sales Discounts 9,500 Cost of Goods Sold 396,000 Freight-Out 2,000 Advertising Expense 15,000 Interest Expense 19,000 Salaries and Wages Expense 84,000 Utilities Expense 23,000 Depreciation Expense 3,500 Income tax expense 14,000 Interest Revenue 25,000 Instructions 1. Use the above information to prepare a multiple-step income statement in good form for the year ended December 31, 2022. 2. Calculate the profit margin and gross profit rate. 3. Suggest three ways that either the gross profit rate or profit margin might be increased. Item b: Entity C sold Entity D $10,000 of merchandise, terms 3/10, net 30. Entity C paid $5,000 for the merchandise. Instructions 1. Journalize the sale on Entity C's books. 2. If Entity D returned $2.500 of the merchandise, and paid for the remainder 9 days from the date of the sales invoice, how much did Entity D remit (pay) Entity C