Question 2 (10 marks) Below are 5 multiple choice items. Indicate in the table below the letter corresponding to the best answer for each item M. C. Item 1 Answer M. C. Item 4 Answer 2 5 3 1. A company had sales of $40,000, sales discounts of $800, sales returns of $1,600, and commissions orved to salespeople of $600. What is net sales? 2 $37,600 b. $38.400 c. $39.200 d. $40.000 2. $0 2. On January 2, Alfredo Corporation sold merchandise with a pross price of $100,000 to a customer with terms of 2/10, 1/30. How much in sales discounts will be recorded if payment is received from the customer on January 8? b. $2.000 c. $98.000 a $100.000 3. A company's accounts receivable balance after posting net collections from customers is $150,000. Management has determined the following: $100,000 of the accounts that are 1 to 30 days past due are 2% uncollectible; and $50,000 of the accounts that are 31 to 60 days past due are 10% uncollectible. What is the net realisable value of the accounts receivable? 2. $143.000 b. $145.000 c. $148.000 d. $150.000 AT&U Company has the following data for the year ended December 31, Year 1: Sales (credit) $2,500,000 Sales returns and allowances 50,000 Accounts receivable (December 31, Year 1) 640,000 Allowance for doubtful accounts (before adjustment at December 31, Year 1, credit balance) 20,000 Estimated amount of uncollected accounts based on aging analysis (December 31. Year 1) 45,000 4. Refer to AT&U Company. If the company estimates its bad debts at 1% of net credit sales, what amount will be reported as bad debt expense for Year 1? 2. $6,400 b. $24.500 c. $25,000 d. $45,000 5. Refer to AT&U Company. If the company uses the ans of accounts receivable approach to estimate its bad debts, what amount will be reported a bad debt expense for Year 12 a $20,000 b. $25.000 C545.000 d. 165,000