The Sports Store experienced the following events for the 2014 accounting period:1. Acquired $40,000 cash from the issue of common stock.2. Purchased $78,000 of inventory on account.3. Received goods purchased in Event 2 FOB shipping point; freight cost of $900 paid in cash.4. Sold inventory on account that cost $46,000 for $72,000.5. Freight cost on the goods sold in Event 4 was $560. The goods were shipped FOB destination. Cash was paid for the freight cost.6. Customer in Event 4 returned $5,100 worth of goods that had a cost of $2,950.7. Collected $61,500 cash from accounts receivable.8. Paid $66,100 cash on accounts payable.9. Paid $2,600 for advertising expense.10. Paid $3,100 cash for insurance expense.Requireda. Which of these events affect period (selling and administrative) costs? Which result in product costs? If neither, label the transaction NA.b. Record each event in a horizontal statements model like the following one. The first event is recorded as anexample.
The Sports Store experienced the following events for the 2014