Exercise 1 - Reporting net sales and cost of goods sold: Avery Inc. made the following transactions in 2018. Prepare the necessary journal entries and record the effect of each transaction on the accounts provided in the table below. Assume that all returned merchandise is considered obsolete and cannot be resold. January 5, 2018 Sold 10 pairs of shoes to customer A for $120 each. The credit terms are 2/15, n/45. The cost of the shoes was $700 ($70 per shoe). January 15, 2018 Customer A returned 3 pairs of shoes. January 17, 2018 Customer A paid the amount he owed in cash. January 20, 2018 Sold 2 pairs of shoes to customer B for $280 in cash. The price also includes free shipping to the customer's home. The cost of the shoes was $120. Shipping cost was $14. March 22, 2018 Sold 5 pairs of shoes for $500 to customer C. Customer C paid with a Visa credit card. Visa charges a 2% transaction fee. The cost of the shoes was $220. i Gross Revenues Contra-revenues Net Revenues Cost of goods sold Gross profit Date Jan. 5, 2018 Jan. 15, 2018 Jan. 17, 2018 Jan. 20, 2018 Mar. 22, 2018