Please answer both parts

Use the information below to answer questions 1 and 2.

Shark manufactures and sells vacuum cleaners directly to customers based 30-minute infomercials. Orders are taken by phone operators and vacuum cleaners are shipped one-two days after orders are taken. Customers have 60 days from the date of delivery to return the vacuum cleaners for a full cash refund of the selling price (not including shipping). During March, 2021, Shark shipped 5,000 vacuum cleaners at a selling price of $550 plus shipping of $40 and sales tax of 6% on the selling price. The cost of manufacturing a vacuum cleaner is $375. Based on Sharks past experience, 2% of the vacuum cleaners sold are expected to be returned. In April, 55 vacuum cleaners sold in March were returned.

1. On Sharks March 31, 2021, balance sheet, which of the following statements is correct based on vacuum cleaners sold in March?

1. The sales tax liability should be reported at $165,000.
2. Sales revenue should be reported for $2,695,000.
3. A and B.
4. Neither A nor B.

2. On Sharks April 30, 2021, balance sheet, which of the following statements is correct based on sales of vacuum cleaners sold in March?

1. Returned inventory should be reported at $20,625.
2. Refund liability should be reported at $26,235.
3. A and B.
4. Neither A nor B.