October 29, 2017 through November 4, 2017 Exercise 1 (Chapter 3)-Effect of sales returns and allowances and freight costs on the financial statements:Perpetual system Fox Company began the 2016 accounting period with $40,000 in cash, $86,000 in inventory, $60,000 common stock, and $66,000 retained earnings. During 2016, Fox experienced the following events: 1. Sold merchandise costing $58,000 for $99,500 on account to Hall Furniture Store. 2. Delivered the goods to Hall under terms FOB destination. Freight costs were $900 cash. 3. Received returned goods from Hall. The goods cost Fox $4,000 and were sold to Hall for $5,900. 4. Granted Hall a $3,000 allowance for damaged goods that Hall agreed to keep. 5. Collected partial payment of $81,000 cash from accounts receivable. Required: Record the events in a statements model like the one shown below: evExp Net Inc. Cash Flow Equity Assets Accts. Rec, Cash + + Inv Com. Stk. + 'Ret. Earn Exercise 2 (Chapter 4)-AICPA Code of p Kathryn Hill discovered a material reporting error in the accounting records of Jones, Inc.(J1) during the annual audit. The error was so significant that it will certainly have an adverse effect on the price of the