PART 1

Which is the correct option for :

The net amount expected to be received in cash from accounts receivable

• is impossible to estimate.
• depends on the credit terms offered by the company, the credit quality of its customers, and general economic conditions.
• is called net sales revenue.
• None of the above is true.

PART 2

A service-based company reports gross revenue of $125,000; sales discounts of $4,500; allowance for doubtful accounts of $6,000; operating expenses of $89,600; and a loss on sale of PP&E of $2,000. What is the company's net income after taxes assuming a rate of 20%?

PART 3

During the month of April, Atlas Inc. recognized $65,200 of wage expense but paid cash wages of $67,800 to its employees. Atlas's wages payable liability had a closing balance of $21,800 on April 30. What was the company's opening balance of Wages payable on April 1?