1.

Cash overdraft 80,000

note payable 400,000
accounts payable 680,000
salaries payable 400,000
employees income tax payable 100,000
income tax payable 400,000
estimated warranty payable 50,000
estimated premium outstanding 90,000
customer's accounts with credit balances 25,000
Total current liabilities 2,225,000

Discounts on 2010 purchases 80,000

Less: Discounts taken 32,000
Discounts still available
Accounts payable balance 8,000 40,000
Purchase discounts lost 40,000