Exercise 3-9 Effect of product cost and period cost: Horizontal statements model LO 3-2 The Sports Store experienced the following events for the 2014 accounting periood 1. Acquired $55,000 cash from the issue of common stock. 2. Purchased $80,000 of inventory on account. 3. Received goods purchased in Event 2 FOB shipping point; freight cost of $400 paid in cash 4. Sold inventory on account that cost $53,300 for $82,000 5. Freight cost on the goods sold in Event 4 was $670. The goods were shipped FOB destination. Cash was paid for the freight cost. 6. Customer in Event 4 returned $5,000 worth of goods that had a cost of $3,250 7. Collected $72,000 cash from accounts receivable 8. Paid $68,100 cash on accounts payable 9. Paid $3,700 for advertising expense 10.Paid $3,500 cash for insurance expense