Smith Co. sold S44254 of merchandise on account on April 3, 20x7 under the terms 2/15, n/45. The customer paid the balance of the account on April 16. The journal entry to record the receipt of cash includes which of the following? Select one: O a. $885 decrease to net income and $44254 reduction in accounts receivable O b. So impact to net income and $43369 reduction in accounts receivable O c. $0 impact to net income and $44254 reduction in accounts receivable O d. $885 decrease to net income and $43369 reduction in accounts receivable You enter into a three year service contract. The total contract price is $23454. Costs incurred in the first year are $4574 and the expected costs to complete the contract are $7275. How much profit will be recognized on this contract in the first year? Select one: O a. SO O b. $11605 c. $4480 () d. $7288