[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 $120,000 cash. 2. Purchased $180,000 of merchandise on account. 3. Sold merchandise that cost $162,000 for $322,000 on account. 4. Collected $284,000 cash from accounts receivable. 5. Paid $160,000 on accounts payable. 6. Paid $46,000 of salaries expense for the year. 7. Paid other operating expenses of $62,000. 8. Sage adjusted the accounts using the following information from an accounts receivable aging schedule: Percent Likely to Be Number of Days Past Due Amount Uncollectible Current $22,800 0.01 0-30 9,500 0.05 31-60 1,900 0.10 61-90 1,900 0.20 Over 90 days 1,900 0.50 Allowance Balance