d. Shipped merchandise to customers, freight terms FOB destination. The freight costs ire sS3 Problem 3-23 Effect of purchase returns and allowances and purchase discounts The following events were completed by Dana's Imports in September 2018: LO 3-2 on the financial statements: Perpetual systenm Sept. 1 Acquired $50,000 cash from the issue of common stock CHECK FIGURES a. Ending Cash:$51,098 b. Net Income: $13,550 1 Purchased $28,000 of merchandise on account with terms 2/10, n/30. 5 Ble Paid $600 cash for freight to obtain merchandise purchased on September 1. 8 Sold merchandise that cost $15,000 to customers for $31,000 on account, with terms 2/10, n/30 8 Returned $600 of defective merchandise from the September 1 purchase to the supplier 10 Paid cash for the balance due on the merchandise purchased on September 1 20 Received cash from customers of September 8 sale in settlement of the account balances but not within the discount period. Paid $2,450 cash for selling expenses. 30 Required Record each event in a statements model like the following one. The first event is recorded as an example. a. -Liab. + Rev. Exp. Net Inc Cash Flow Assets Equity Cash +Accts. Rec. +Inv.Accts. Pay.Com. Stk. + Ret. Earn. 50,000 + + NA NA 50,000NA NANANA 50,000 FA NA b. Prepare an income statement for the month ending September 30 c. Prepare a statement of cash flows for the month ending September 30. d. Explain why there is a difference between net income and cash flow from operating activities