LO 4-2, 4-3,4-4,4-5 Exercise 4-17A Comprehensive exercise with sales discounts Junker's Stash started the 2016 accounting period with the balances given in the financial state. ments model shown below. During 2016 Junker's Stash experienced the following business events 1. Paid cash to purchase $70,000 of merchandise inventory 2. The goods that were purchased in Event I were delivered FOB destination. Freight costs of $1,400 were paid in cash by the responsible party 3a. Sold merchandise for $72,000 under terms 1/10, 1/30. 31. Recognized 541,900 of cost of yoods sold. 4a. Junker's Stash customers returned merchandise that was sold for $2,100. 45. The merchandise returned in Event 4a had cost Junker's Stash $1,250 5. The merchandise in Event 3a was sold to customers FOB destination. Freight costs of $1,650 were paid in cash by the responsible party 6a. The customers paid for the merchandise sold in Event 3a within the discount period. Recog. nized the sales discount 61. Collected the balance in the accounts receivable account 7. Paid cash of 56,850 for selling and administrative expenses 8. Sold the land for 89,100 cash. Required 4. Record the above transactions in a financial statements model like the one shown below. Accts. Com Ret. Rev Cash Cash Rec. + Inventory + Land Gain Not Inc. 80,000+ 0 + 15,000 + 11,000 70,000+ 36,000 NA NA NA How Event No. + Stk. Eam. Exp. Flow Bal. NA ment b. Determine the amount of net sales c. Prepare a multistepincome statement. Include common size percentages on the income state- d. Junker's Stash return on sales ratio in 2015. was 12 percent. Based on the common size data in the income statement, did Junker's Stash expenses increase or decrease in 2016? e. Explain why the term loss is used to describe the results due to the sale of land