Refer to the financial statements of The Home Depot in Appendix A. (Note: Fiscal 2019 for The Home Depot runs from February 4, 2019, to February 2, 2020. As with many retail companies, The Home Depot labels the period "Fiscal 2019" even though it ends in the 2020 calendar year. The label "Fiscal 2019" is appropriate because Fiscal 2019 includes 11 months from the 2019 calendar year. The Home Depot explains its choice of fiscal period in Note 1 to its financial statements.) Required: 1. How much did The Home Depot owe for salaries and related expenses at February 2, 2020? Was this an increase or decrease from the previous year? O $1,506 million (Increase) O $1,506 million (Decrease) $1,494 million (Decrease) O $1,494 million (Increase) 2. Refer to the Net Sales in the Summary of Significant Accounting Policies that follows The Home Depot's statements of cash flows. How does the company account for customer payments received in advance of providing merchandise or services? The funds are deposited in the bank account and no entry is recorded. The funds are not deposited in the bank account and no entry is recorded. O Record the prepayment as revenue. O The revenue is deferred until the goods or services are provided to the customer. 3. What adjusting journal entry must The Home Depot make when it provides services paid by gift card? O debit Deferred Revenue, credit Cash O debit Net Sales Revenue, credit Deferred Revenue O debit Deferred Revenue, credit Net Sales Revenue O debit Cash, credit Deferred Revenue