Part II: Basic accounting entries (provide the journal entry as well as effects of each debit/credit account to A/L/NI. 1. Collected $20,000 cash from outstanding customer accounts who had paid for sales on credit. 2. On 5/1 a client prepaid for the company's services for an entire year paying $100,000. 3. On 7/1, a company purchases $15,000 of inventory on credit. On 7/10 the company sells the inventory for $32,000 with 70% of the customers paying cash and 30% paying on credit terms. 4. On 1/1 the company prepaid its rent for the month of January for $10,000.