[The following information applies to the questions displayed below.) Sage Inc. experienced the following transactions for Year 1, its first year of operations: 1. Issued common stock for $110,000 cash. 2. Purchased $195,000 of merchandise on account. 3. Sold merchandise that cost $164,000 for $326,000 on account. 4. Collected $290,000 cash from accounts receivable. 5. Paid $175,000 on accounts payable. 6. Paid $58,000 of salaries expense for the year. 7. Paid other operating expenses of $74,000. 8. Sage adjusted the accounts using the following information from an accounts receivable aging schedule Allowance Balance Number of Days Past Due Current @-30 31-60 61-90 Over 90 days Amount $21,600 9, een 1,800 1,800 1,800 Percent Likely to Be Uncollectible 0.01 0.05 0.10 @.20 0.50 + SAGE INC. Accounting Equation for the Year 1 = Liabilities Equity Merchandise Accounts Common Retained Inventory Payable Stock Earnings Assets Accounts Allowance Receivable Event Accounts Titles for Retained Earnings Cash 1 + 2 3a. 3b 4 5 6 7 8 Bal