Faroe Inc. had ending inventory of $30,000 listed on its balance sheet. Faroe Inc. recently had its warehouse flood and $2,000 of inventory was damaged beyond repair and it wrote-down inventory by $2,000 to $28,000. This is an example of what? A. Loss on the Sale of Inventory B. Inventory Deferral C. Inventory Accrual D. Inventory Shrinkage 3. Gamma Company has $300,000 in sales during the year. Gamma provides sales discounts of $7,000, pays freight-out of $10,000, and has sales returns of $15,000. What is Gamma's net sales for the year? A. $300,000 B. $293,000 C. $283,000 D. $278,000 1. Alpha Company provides credit terms of 2/10n30 to its customers. Alpha invoices a customer $2,000 for work performed on April 12. If the customer pays on April 18 , what amount must they pay to receive the discount? A. $2,000 B. $1,960 C. $1,800 D. $2,040 10. If a machine is purchased on January 1st,2021 for $10,500 with $500 in salvage value and a 5 -year useful life, what is the historical cost of the machine on the Balance Sheet as of December 31st,2021 ? A. $10,500 B. $10,000 C. $8,500 D. $8,400