October 1, 2022 Tercina Company purchased merchandise from Sharma, Inc. for $1,000 with the following payment terms. The purchase was on account with terms 2%/10, n/30. Tercina paid $100 for shipping costs. October 5, 2022 Tercina returned merchandise worth $100 to Sharma, Inc. October 8, 2022 Tercina Company paid Sharma in full for the merchandise, less the discount available for early payment. Required: 1. Give the journal entries that would be required to account for the activity above. 2. After the transaction on October 8, what do the financial accounting records indicate as the balance of inventory? (Hint: after making all your journal entries, post those entries to a T-account to determine the final balance.) Show all of your computations and explain as needed. 3. What is the total (net) effect of all three transactions on assets, liabilities, equity, revenue, and expense? (Hint: think about the t-accounts for all of the accounts affected by your journal entries. Hint #2: the effects on assets, liabilities, and equity have to keep the accounting equation in balance)