The following are the sales transactions of EcoMart Merchandising. EcoMart uses a perpetual inventory system and the gross method. October 1 old marchandise for $2,100, with credit terms s/30, invoice dated October 1. The cost of the merchandise is $1,200. October The customer in the October 1 sale returned $210 of merchandise for full credit. The merchandise, which had cost $120, is returned to inventory. October Sold merchandise for $1,000 cash. Cost of the merchandise is $690. October 30 Received payment for the amount due from the October 1 sale less the return on October 4. 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. October 1 October 6 October 5 October 30 Income Statement Components Increase Decrease Amount Increase/Decrease Amount Increase/Decrease Amount Increase/Decrease Amount Sales (gross) increase 2,100 Sales discounts Sales returns and allowances Net sales R+) increase 2.100 Cost of goods sold (-) decrease Gross profit ) increase View transaction list View journal entry worksheet No. Date General Journal Debit Credit 1 Oct 01 Accounts receivable 2,100 Sales 2 Oct 01 Cost of goods sold Merchandise inventory 2,100 1,200 1,200 3 Oct 06 Sales returns and allowances 210 210 Accounts receivable 120 4 Oct 06 Merchandise inventory 20 120 Cost of goods sold 1,000 5 Oct 09 Cash 1,000 Sales 6 Oct 09 Cost of goods sold 690 690 Merchandise inventory 1,890 7 Oct 30 Cash 1,890 Accounts receivable