For each transaction show the impact of the transaction on the accounting equation. Assume that a perpetual inventory method is used. Recording PURCHASE of Merchandise 1. Purchase $3,000 of inventory on account, terms 2/10 n/30 Asset Liability Equity 2. Return $700 of inventory from initial purchase (in #1) Asset Liability Equity 3. Pay net balance taking the discount Asset Liability Equity Recording SALE of Merchandise (new scenario) 4. Sale of merchandise on account 5700, cost of $225 (terms 3/10 n/30) Asset Liability Equity 5. Customer return $100 of inventory from initial purchase (in #4), cost of $30 Asset Liability Equity 6. Customer pays net balance within the discount period Asset Liability Equity 7. Calculate the four critical subtotals in the multi-step income statement based on the information provided in this table: Sales Sales returns Sales discounts Cost of Goods Sold Selling Expenses Administrative Expenses Interest Expense Interest Revenue Income Tax Expense 880,000 5,000 4,000 250,000 260,000 173,000 5,000 4,000 5,000 Amount a. Net Sales b. Gross Profit C. Income from Operations d. Net Income