@mckan514w That first question is a weird one but $425,000 is correct because you know the company used fixed assets of $950,000 ($1,000,000 @ 95% capacity) to create $2,000,000 in sales, so to have a 150% increase in sales to $3,000,000, fixed assets should also be increased 150% to get $1,425,000 ($950,000 x 150%) of needed fixed assets, of which they already have $1,000,000 so the answer is $425,000.
As for the second question, you would never take the discount out of the AR balance because a company doesn't know if a client will pay early until they receive a check at which point they would take the full amount out of AR as follows:
DR Cash XX
DR Customer Discount Expense XX
CR Accounts Receivable XX
BEC- 93
FAR- 9/6/2016
AUD- 10/7/2016
REG- 11/21/2016
Wiley CPAexcel Self Study & Ninja supplements
.