Exercise 1 (50 points) Presented below is the information for Chocofabrics for the month January 31, 2020 330000 15000 Cost of goods sold Depreciation expense Rent expense Salaries and wages expense 630000 Insurance expense 31000 Sales discounts 25500 Sales returns and allowances 33000 Sales revenue 26500 1800000 Instructions: Prepare an income statement for the month ended January 31, 2020. Exercise 2 (15 points) 1) On November 2, 2020, Griffey Company has cash sales of 7,000 from merchandise having a cost of 5,000. The entries to record the day's cash sales will include: (5 points) a. a 5,000 credit to Cost of Goods Sold. b. a 7,000 credit to Cash. c. a 5,000 credit to Inventory. d a 7,000 debit to Accounts Receivable. 2) The journal entry to record a credit sale is (5 points) a. Cash Sales Revenue b. Cash Service Revenue c. Accounts Receivable Service Revenue d. Accounts Receivable Sales Revenue 3) When goods are returned that relate to a prior cash sale, (5 points) a. the Sales Returns and Allowances account should not be used. b. the Cash account will be credited. c. Sales Returns and Allowances will be credited. d. Accounts Receivable will be credited