ACCT 2110 CE#3 Item a: The adjusted trial balance of Entity B included the following selected accounts: Debit Sales Revenue Credit $900,000 Sales Returns and Allowances $ 45,000 Sales Discounts 18,500 Cost of Goods Sold 376,425 Freight-Out 7,000 Advertising Expense 35,000 Interest Expense 22,000 Salaries and Wages Expense 125,000 Rent Expense 120,000 Depreciation Expense 12,000 Income tax expense 40,000 Dividend Revenue 45,000 Instructions 1. Use the above information to prepare a multiple-step income statement for the year ended December 31, 2023. 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 $15,000 of merchandise, terms 2/10, 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 $3,000 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