Instructions Question 1 3.5 pts Sales discounts is classified as a(n): revenue account expense account contra asset account liability account O contra revenue account none of the above choices are correct Question 2 3.5 pts The number of days sales in inventory measures: the number of days that elapse between buying A TP Question 2 3.5 pt The number of days sales In Inventory measures: the number of days that elapse between buying Inventory from suppliers and collecting cash from our customers due to selling them inventory the number of times a company is able to collect its accounts receivable during the year the number of days that elapse between making sales to customers on account and collecting cash from our customers due to selling them inventory O the number of times a company is able to sell its inventory to credit customers during the year o the number of days that elapse between buying inventory from suppliers and making sales to customers on account 4 pts Question 3 How does the recording of bad debt expense effect Income and the net realizable value? Question 3 How does the recording of bad debt expense effect net income and the net realizable value? O net income = no effect net realizable value = no effect net income = decrease net realizable value = increase O net income = increase net realizable value = no effect net income = increase net realizable value = increase net income = no effect net realizable value - decrease net income - decrease net realizable value = decrease O net income - decrease net realizable value no effect The transactions below relate to ABC Company. Indicate how each transaction would be classified on the statement of cash flows. Select your answer by clicking in the drop down box to the right of each transaction. Answer choices may be used once, more than once, or not at all. [ Choose) ABC purchased $40,000 worth of store equipment from Libby Company by paying $8,000 cash and agreeing to pay the remainder within six months. [ Choose ] ABC Company received $3,000 cash from a customer for services to be performed in the following month ABC Company sold stock to owners for $100.000 cash. [ Choose ABC Company received and paid a $500 utility bill. [ Choose ABC Company spent $25.000 cash to acquire a patent. [Choose ] 16 pts Question 5