Purchases and Sales of Merchandise, Cash Flows Two Wheeler, a bike shop, opened for business on April 1. It uses a periodic inventory system. The following thansactions occurred during the first Required: of decreasing the corresponding financial statement item. 1. Identify and analyze each of the following transactions of Two Wheeler. April 1: Purchased five units from Duhan Co. for $500 total, with terms 3/10,n/30,FOB destination. Activity Account Payable Increase, Purchases Increase Statement(s) How does this entry affect the accounting equation? April 10: Paid for the April 1 purchase. Activity Accounts Statement(s) How does this entry affect the accounting equation? How does this entry affect the accountina equation? Feedback Vheck My Work Incorrect April 18: Purchased ten units from Clinton Inc. for $900 total, with terms 3/10,n/30, FOB destination. How does this entry affect the accounting equation? Feedback Check My Work Incorrect April 25: Sold three units for $200 each, cash. Activity Accounts Statement(s) Feedback Hnwe Anac thic antru affort tha aronuntinn anutinn? How does this entry affect the accounting equation? Feedback Theck My Work Incorrect 4. Cash outflow during the first month of business is much larger than expenses as shown on the income statement due to