Choc-o-holics December 31, 2017 adjusted trial balance shows the following amounts:

Accounts Receivable $38,500

Sales discounts $ 1,200

Sales returns $ 600

Allowance for doubtful accounts $2,600

What is the net realizable value of accounts receivable at December 31, 2017?

A. $ 38,000

B. $ 36,700

C. $ 35,300

D. $ 35,900

E. None of the above

Setting up an Allowance for Doubtful Accounts is consistent with which of the following principals:

A) Historical Cost Principal

B) Matching Principal

C) Consistency

D) All of the above

On March 1, 2016, State Corporation invested in a $30,000 note receivable with a 1-year term and a 9% annual interest rate. Which of the following statements correctly reflects the affect on the note on the company's 2017 financial statements?

1. Interest revenue of $450; $32,700 cash inflow from investing activities.

2. Interest revenue of $450; $30,000 cash inflow from investing activities; $2,700 cash inflow from financing activities.

3. Interest revenue of $450; $30,000 cash inflow from investing activities; $2,700 cash inflow from operating activities

4. Interest revenue of $2,700; $32,700 cash inflow from investing activities