Direct Method Question (2026, Current Period): 2026 2025 A/R 49,000 23,000 Prepaid Insurance 15,000 3,000 Salaries Payable 13,000 5,000 Sales 125,000 63,000 Insurance Expense 20,000 12,000 Salaries Expense 57,000 21,000 What is the second number in the cash event (direct method)

James river jewelry is a small jewelry shop. while james river jewelry does sell typical jewelry purchased from jewelry vendors, including such items as rings, necklaces, earrings, and watches, it specializes in hard-to-find asian jewelry. although some asian jewelry is manufactured jewelry purchased from vendors in the same manner as the standard jewelry is obtained, many of the asian jewelry pieces are often unique single items purchased directly from the artisan who created the piece (the term manufactured would be an inappropriate description of these pieces). james river jewelry has a small but loyal clientele, and it wants to further increase customer loyalty by creating a frequent buyer program. in this program, after every 10 purchases, a customer will receive a credit equal to 50 percent of the average of his or her 10 most recent purchases. this credit must be applied to the next (or 11th) purchase.