Academy Sales Company (ASC) started the Year 2 accounting perlod with the balances given In the financlal statements model shown as follows. Durling Year 2, ASC experlenced the following business events: 1. Purchased $30,000 of merchandise Inventory on account, terms 2/10,n/30. 2. The goods that were purchased in Event 1 were delivered FOB shipping point. Freight costs of $740 were pald In cash by the responsible party. 3. Returned $1,000 of goods purchased in Event 1. 4. (a) Recorded the cash discount on the goods purchased in Event 1. (b) Pald the balance due on the account payable within the discount perlod. 5. (a) Recognized $37,000 of cash revenue from the sale of merchandise. (b) Recognized $29,000 of cost of goods sold. 6. The merchandise in Event 5 a was sold to customers FOB destination. Freight costs of $1,090 were pald In cash by the responsible party. 7. Pald cash of $5,400 for selling and administrative expenses. 8. Sold the land for $10,800cash. Required a. Record these transactlons in a financlal statements model. b. Prepare a schedule of cost of goods sold (Appendix). c. Prepare a multistep Income statement. Include common slze percentages on the income statement. d. ASC's gross margin percentage In Year 1 was 20 percent. Based on the common size data in the income statement, did ASC ralse or lower its prices in Year 2 (Appendlx)? e. Assuming a 10 percent rate of growth, what is the amount of net Income expected for Year 3 ? Complete this question by entering your answers in the tabs below