Power Supply and Line driver encoders

Hi,
I'm working on building a 3 axis CNC inspection system. There will be 2 Y axes with one as the slave axis. I plan to use linear encoders on all X, Y and Z axes. For this, I have got the 7i96S and 7i85 Mesa boards. I had two queries regarding the electrical circuits.

• The power supply rating is 5 V. Is a 5V 2A PSU suitable?
• The datasheet for 7i85 says that the RS422 encoders should be terminated with a 120 Ohm resistor and a 26LS32 RS-422 differential receiver. What would the circuit look like in this case? For reference, this is the encoder I plan to use, in the Line Driver model. m.alibaba.com/x/16C29T?ck=pdp

I'm very much new to this, so I apologize if these are very basic queries. I'd really appreciate any insights.

The 7I85 has built in 120 Ohm termination when used is RS-422 (line driver) mode.
no additional termination is needed.

Are the QA, QB, IDX pins on the 7i85 equivalent to the A, B, Z signal in line driver encoders?