Answer a and b

File Edit iew History Bookmarks Window Help or Irven Northwest Sales had the following transactions in 2016: 1. The business was started when it acquired $63,500 cash from the issue of common stock. 2. Northwest purchased $173,000 of merchandise for cash in 2016 the year, the company sold merchandise for $197,650. The merchandise cost $108,708. Sales were made under the following terms a.$ 50,670 Cash sales b 3170 The credit card company charges a 3.25 percent service fee) c. 10,810 Sales on account 4. The company collected all the amount receivable from the credit card company 5. The company collected $9,945 of accounts receivable. 6. The company paid $40,691 cash for selling and administrative expenses 7.Determined that 6.00 percent of the ending accounts receivable balance would be uncollectible. a. Show the effects of each of the transactions on the elements of the financial statements, using a horizontal statements model like the one shown here. Use + for increase, - for decrease, and NA for not affected. In the Cash Flow column, indicate whether the item is an operating activity (IA), or financing activity (FA).Use NA to indicate that an element was not affected by the event. Event 3d indicates Cost of Goods Sold. The first transaction is entered as an entries do not affect the statements model.) activity (OA), investing example.(Hint: Closing i NORTHWEST SALES Effect of Transactions on Financial Statements Balance Sheet Liabilities + NA Income Statement Cash Flow Assets Revenue -Expense Net Income No. Equity NA NA FA 2. 3a. 3b. 3c. 3d. 5. 6. 7. b. Prepare general journal entries for each of the transactions and post them to T-accounts. (If no entry is required for a transaction/event, select "No journal ontry required" in the first account field. Round your answers to the nearest whole dollar.)