On January $1,2024,$ The Russell Inc started a business

The company had the following accounting events during the first year of operation.

$1.$ Started the business by issuing common stock for $$450,000$ cash.

$2.$ Paid $$355,500$ cash to purchase inventory.

$3$ Sold merchandise that cost $$180,000$ for $$405,000$ on account.

Hint : Think $3$a and $3$b for event $3$

$4$ Paid $$90,000$ for operating expenses.

$5$ Wrote off $$27,000$ of inventory

$6$ Collected $$360,000$ cash from accounts receivable.

REQUIRED

$1.$ Record the preceding transactions in the horizontal statements model.

$2.$ Prepare an income statement, a balance sheet, and a statement of cash flows.

$3.$ Since The Russell Inc sold inventory for $405,000$

$ the company be able to recover more than $20\%$ of the

$450,000$

$ invested in the stock.

Do you agree with this statement? Why or why not?