[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 $50,000 cash.
2. Purchased $140,000 of merchandise on account.
3. Sold merchandise that cost $110,000 for $250,000 on account.
4. Collected $236,000 cash from accounts receivable.
5. Paid $118,000 on accounts payable.
6. Paid $50,000 of salaries expense for the year.
7. Paid other operating expenses of $28,000.
8. Sage adjusted the accounts using the following information from an accounts receivable aging schedule:

Number of Days Past Due	Amount	Percent Likely to Be Uncollectible		Allowance Balance
Current	$	10,000		0.01
030		2,000		0.05
3160		1,200		0.10
6190		500		0.20
Over 90 days		300		0.50

\begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{13}{|c|}{ SAGE INC. } \\ \hline \multicolumn{13}{|c|}{ Accounting Equation for Year 1} \\ \hline \multirow[b]{2}{*}{ Event } & \multicolumn{5}{|c|}{ Assets } & \multirow{2}{*}{==} & \multirow{2}{*}{LiabilitiesAccountsPayable} & \multirow{2}{*}{++} & \multicolumn{3}{|c|}{ Equity } & \multirow[b]{2}{*}{ Account Titles for Retained Earnings } \\ \hline & Cash & + & NRVAccountsReceivable & + & MerchandiseInventory & & & & CommonStock & + & RetainedEarnings & \\ \hline 1. & & + & & + & & = & & + & & + & & \\ \hline 2. & & + & & + & & = & & + & & + & & 7 \\ \hline 3a. & & + & & + & & = & & + & & + & & \\ \hline 3b. & & + & & + & & = & & + & & + & & \\ \hline 4. & & + & & + & & = & & + & & + & & 7 \\ \hline 5. & & + & & + & & = & & + & & + & & \\ \hline 6. & & + & & + & & = & & + & & + & & \\ \hline 7. & & + & & + & & = & & + & & + & & \\ \hline 8. & & + & & + & & = & & + & & + & & \\ \hline Bal. & 0 & + & 0 & + & 0 & = & 0 & + & 0 & + & 0 & \\ \hline \end{tabular}