Exercise 1 - Reporting net sales and cost of goods sold Alon Inc. made the following transactions in 2018. 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 ofthe shoes was $700 (S70 per shoe). Sold one pair of shoes to customer B for $150 in cash. Customer B paid additional $3 sales tax. The cost of the shoes was $80 January 7, 2018 A returned 3 pairs of shoes. January 15, 2018 Customer January 17, 2018Customer A paid the amount he owed in cash. January 20, 2018 Sold 2 pairs of shoes to customer C 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 S500 to customer D. Customer D paid with a Visa credit card Visa charges a 2% transaction fee. The cost of the shoes was S220. December 31, 2018 Alon Inc. expects that merchandise at the amount of S170 sold in 2018 will be returned in 2019 Date Jan. 5, 2018 Jan. 7. 2018 Jan. 15, 2018 Jan. 17, 2018 Jan. 20, 2018 Mar. 22, 2018 Dec. 31. 2018 Gross Revenues C Net Revenues Cost of sold Gross profit