Problem 3-24 Effect of purchase returns and allowances and purchase discounts on the financial statements perpetual system The following events were completed by Chan's Imports in September 2012. Sept.Acquired $60,000 cash from the issue of common stock. 1 Purchased $36,000 of merchandise on account with terms 2/10, n/30. 5 Paid $800 cash for freight to obtain merchandise purchased on September 1 8 Sold merchandise that cost $20,000 to customers for $38,000 on account, with terms 2/10, 1/30 8 Returned $1.500 of defective merchandise from the September I purchase to the supplier 10 Paid cash for the balance due on the merchandise purchased on September 1 20 Received cash from customers of September 8 sale in settlement of the account balances, but not within the discount period. 30 Paid S4,900 cash for selling expenses Required a. Record each event in a statements model like the following one. The first event is recorded as an example. b. Prepare an income statement for the month ending September 30. c. Prepare a statement of cash flows for the month ending September 30. d. Explain why there is a difference between net income and cash flow from operating activities Assets Rox. - Ex - Net Ine. Cash Flow Cash + Accts. Rec. NA - + I. - - NA - Liab. + Accts. Pay. + + Equity Com. Stk. + Ret Earn 60,000 + NA NA - NA NA