During the year, Polar Inc., who uses the allowance method, made an entry to write off a $2,000 uncollectible account. Before this entry was posted, the balance in accounts receivable was $40,000 and the balance in the allowance account was $3,500 (credit). The net realizable value of accounts receivable after the write off entry was $36,500 O $38,000 $38,500 $40,000 Question 5 (1 point) The transaction price when non-monetary assets are involved in a sale under IFRS is the value of the non-cash consideration received. True False Question 6 (1 point) Tulip Corporation sells merchandise on account for $5,000 to Rose Corporation with credit terms of 2/10, 1/30. Rose returns $750 of merchandise that was damaged, along with a cheque to settle the account within the discount period. What is the amount of the cheque? O $4.900 O $5,000 $4,250 $4,165 Question 7 (2 points) Using the information below for Rainbow Inc., income from continuing operations is? Sales Loss on disposal of discontinued operation Gain on sale of land Cost of goods sold Interest expense Selling and administration expenses Unrealized gain on FV-OCI equity securities Income tax rate 700,000 13,000 27,500 200,000 22,500 145,000 9,200 20% $288,000 O $270,420 $432,000 $277,600