Junker's Stash started the Year $2$ accounting period with the balances given in the financial statements model shown as follows. During Year $2,$ Junker's Stash experienced these business events:

Paid cash to purchase $$94,000$ of merchandise inventory.

The goods that were purchased in Event $1$ were delivered FOB destination. Freight costs of $$1,880$ were paid in cash by the responsible party.

$3$a$.$ Sold merchandise for $$108,000$ under terms $\frac{1}{10},\frac{n}{30}.$

$3$b$.$ Recognized $$53,900$ of cost of goods sold.

$4$ a$.$ Junker's Stash customers returned merchandise that was sold for $$2,580.$

$4$ b$.$ The merchandise returned in Event $4$a had cost Junker's Stash $$1,490.$

The merchandise in Event $3$ a was sold to customers FOB destination. Freight costs of $$1,890$ were paid in cash by the responsible party.

$6$a$.$ The customers paid for the merchandise sold in Event $3$a within the discount period. Recognized the sales discount

$6b.$ Collected the balance in the accounts receivable account

Paid cash of $$7,450$ for selling and administrative expenses.

$8.$ Sold the land for $$10,300$ cash.

Required

a$.$ Record the transactions in a horizontal financial statements model.

b$.$ Determine the amount of net sales.

c$.$ Prepare a multistep income statement. Include common size percentages on the income statement.

d$.$ The return$-$on$-$sales ratio for Junker's Stash during the prior year was $12$ percent. Based on the common size data in the income statement, did the expenses for Junker's Stash increase or decrease in Year $2?$ Assume sales are the same for both years.