The Pet Store experienced the following events for the Year $1$ accounting period:

Acquired $$50,000$ cash from the issue of common stock.

Purchased $$72,000$ of inventory on account.

Received goods purchased in Event $2$ FOB shipping point; freight cost of $$1,720$ paid in cash.

Sold inventory on account that cost $$56,000$ for $$107,000.$

Freight cost on the goods sold in Event $4$ was $$1,080.$ The goods were shipped FOB destination. Cash was paid for the freight cost.

Customer in Event $4$ returned $$4,480$ worth of goods that had a cost of $$2,290.$

Collected $$87,740$ cash from accounts receivable.

Paid $$68,000$ cash on accounts payable.

Paid $$3,450$ cash for advertising expense.

Paid $$3,400$ cash for insurance expense.

Required

Which of these events affect period $($selling and administrative$)$ costs? Which result in product costs?

Record the above events in a horizontal statement model. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, or NC for net change in cash. If the element is not affected by the event, leave the cell blank. The first event is recorded as an example.