The credit terms offered to a customer by a business firm are 2/10, n/30, which means that

A.

the customer can deduct a 2% discount if the bill is paid between the 10th and 30th day from the invoice date.

B.

two sales returns can be made within 10 days of the invoice date and no returns thereafter.

C.

the customer must pay the bill within 10 days.

D.

the customer can deduct a 2% discount if the bill is paid within 10 days of the invoice date.

Listed below are several transactions that took place during the first two years of operations for the law firm of pete, pete, and roy.year 1 year 2amounts billed to clients for services rendered $ 170,000 $ 220,000 cash collected from clients 160,000 190,000 cash disbursements salaries paid to employees for services rendered during the year 90,000 100,000 utilities 30,000 40,000 purchase of insurance policy 60,000 0 in addition, you learn that the company incurred utility costs of $35,000 in year 1, that there were no liabilities at the end of year 2, no anticipated bad debts on receivables, and that the insurance policy covers a three-year period.required: 1. & 3. calculate the net operating cash flow for years 1 and 2 and determine the amount of receivables from clients that the company would show in its year 1 and year 2 balance sheets prepared according to the accrual accounting model.2. prepare an income statement for each year according to the accrual accounting model.