Northwest Sales had the following transactions in Year 1: 1. The business was started when it acquired $57500 cash from the issue of common stock 2. Northwest purchased $179,000 of merchandise for cash in Year 1. 3. During the year, the company sold merchandise for $198,320. The merchandise cost $109,076. Sales were made under the following terms: b. 142,020 Credit card sales (The credit card company charges a 2.00 percent service fee.) c. 6,300 Sales on account 4. The company collected all the amount receivable from the credit card company. 5. The company collected $5,796 of accounts receivable. 6. The company paid $44.580 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 next. Use for 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.) b. Prepare general journal entries for each of the transactions and post them to T-accounts. c. Prepare an income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Year 1