Question 49 (2 points) A classified balance sheet: 1) Organizes assets and liabilities into important subgroups that provide more information 2) Utilizes a rating system to determine the net value of assets and liabilities. 3) shows only total assets. liabilities and equity. 4) Reports operating, investing, and financing activities. Question 55 (2 points) On May 1. Schilling Company sold merchandise in the amount of $5,800 to a customer, with credit terms of 2/10, n/30. The cost of the items sold is $4.000. Schilling uses the perpetual inventory system and the gross method. On May 5, the customer complains that $500 of the merchandise arrived damaged. Schilling offers a price reduction of 40% on the damaged merchandise, which the buyer accepts. On May 10, payment is received from the customer for the total amount due. The entry recorded on May 5th would be: (1) Debit Accounts Receivable $5,800; credit Sales $5.800 2) Debit Sales Returns & Allowances $500; credit Accounts Receivable $500 3) Debit Merchandise Inventory $500: credit Sales $500 4) Debit Sales Returns & Allowances $200; credit Accounts Receivable $200 Question 56 (2 points) On May 1, Schilling Company sold merchandise in the amount of $5,800 to a customer, with credit terms of 2/10,n/30. The cost of the items sold is $4,000. Schilling uses the perpetual inventory system and the gross method. On May 5, the customer complains that $500 of the merchandise arrived damaged. Schilling offers a price reduction of 40% on the damaged merchandise, which the buyer accepts. On May 10, payment is received from the customer for the total amount due. The entry recorded on May 10th would be: 1) Debit Cash $5,488 and Sales Discounts $112; credit Sales $5,600 2) Debit Cash $5,800; credit Accounts Receivable $5,800 3) Debit Cash $5,684 and Sales Discounts $116; credit Accounts Receivable $5.800 4) Debit Cash $5,488 and Sales Discounts $112; credit Accounts Receivable $5,600