The following are the sales transactions of EcoMart Merchandising. EcoMart uses a perpetual inventory system and the gross method. October 1 Sold merchandise for $2,600, with credit terms n/30, invoice dated October 1. The cost of the merchandise is $1,450. October 6 The customer in the October 1 sale returned $260 of merchandise for full credit. The merchandise, which had cost $145, is returned to inventory. October 9 Sold merchandise for $1,250 cash. Cost of the merchandise is $890. October 30 Received payment for the amount due from the October 1 sale less the return on October 6. Use the above transactions, to analyze each transaction by indicating its effects on the components of the income statement- specifically, identify the accounts and amounts (including + or -) for each transaction. Income Statement Components Sales (gross) Sales discounts Sales retums and allowances Net sales Cost of goods sold Gross profit October 1 Increase/Decrease (+) increase (+) increase Amount Increase/Decrease (+) increase October 6 2,600 1,450 (-) decrease Amount 260 October 9 Increase/Decrease (+) increase 145 (+) increase Amount 1,250 890 October 30 Increase/Decrease + Amount

The foliowing are the sales bardactions of EcoMart Merchandising. EcolMart uses a perpetuar inventory system and the grass method: merchandise is 11,430 . whieh had eapt ti6s, in rmarned to inveatory. Je the above transactions, to analyze each vansactoon by indicating its effects on the components of the income statementpecsfically, identy the accounts and amounts including + or -1 for each vansaction. omplete