Required information [The following information applies to the questions displayed below.] Sage Incorporated experienced the following transactions for Year 1, its first year of operations: 1. Issued common stock for $80,000 cash. 2. Purchased $210,000 of merchandise on account. 3. Sold merchandise that cost $158,000 for $314,000 on account. 4. Collected $278,000 cash from accounts receivable. 5. Paid $190,000 on accounts payable. 6. Paid $54,000 of salaries expense for the year. 7. Paid other operating expenses of $70,000. 8. Sage adjusted the accounts using the following information from an accounts receivable aging schedule: Number of Days Past Percent Likely to Be Allowance Balance Due Amount Uncollectible Current $ 21,600 0.01 0-30 9,000 0.05 31-60 1,800 0.10 61-90 1,800 0.20 Over 90 days 1,800 0.50