Part 3A Required: In the table, show the effect, if any, of 2018 transactions 1-4 on Potter Company's 2018 financial statements. Show the direction of the effect (+ for increase, - for decrease) and the DOLLAR AMOUNT. Show both effects if an element increases and decreases: leave the space blank for no effect. Record a journal entry in the space below each item. SHOW ALL COMPUTATIONS. 1. On January 15 2018. Potter sold 1,000 units of inventory for $500 per unit to customers on account. Potter used the average cost method and a perpetual inventory system. The following information is available: 1-1-18 Beginning inventory 800 units @ $300 each $240.000 1-3-18 Purchase 700 units @ $320 each 224,000 1-10-18 Purchase 500 units @ $340 each 170,000 a 2. On April.1.2018. Potter received principal and interest when a $200,000. 12%, 2-month note matured Potter received the note from a customer on July 1, 2017 and recorded the necessary adjusting entry on December 31, 2017. 3. On June 1. 2018. Potter sold $400,000 of accounts receivable with recourse to Gringotts Finance. Gringotts charged a $8.000 fee and withheld $32,000 of the factored amount to cover possible adjustments. Potter estimated the liability for the recourse obligation to be $16,000 4. On October 1. 2018. Potter wrote off $40,000 in uncollectible accounts receivable. Potter used the allowance method. ASSETS LIABILITIES SHAREHOLDERS' EQUITY 2018 NET INCOME 1. 2. 3. 4. >