Northwest Sales had the following transactions in 2016: 1. The business was started when it acquired $57,000 cash from the issue of common stock. 2. Northwest purchased $182,500 of merchandise for cash in 2016 3. During the year, the company sold merchandise for $199,160. The merchandise cost $109,538. Sales were made under the following terms: a. $ 48,270 Cash sales b. 138,880 Credit card sales (The credit card company charges a 3.25 percent service fee.) c. 12,010 Sales on account 4. The company collected all the amount receivable from the credit card company. 5. The company collected S11,049 of accounts receivable 6. The company paid $47,394 cash for selling and administrative expenses. 7. Determined that 6.00 percent of the ending accounts receivable balance would be uncollectible Required a. Show the effects of each of the transactions on the elements of the financial statements, using a horizontal statements model like the one shown here. Usefor increase, for decrease, and NA for not affected. In the Cash Flow column, indicate whether the item is an operating activity (OA), investing activity (IA), or financing activity (FA).Use NA to indicate that an element was not affected by the event. Event 3d indicates Cost of Goods Sold. The first transaction is entered as an example. (Hint Closing entries do not affect the statements model.)