Exerclse $4-17$A $($Algo$)$ Comprehensive exerclse with sales discounts LO $4-2,4-3,4\mathrm{.}4,4-6,4\mathrm{.}7,4\mathrm{.}8$

Junker's Stash started the Year $2$ accounting perlod with the balances given in the following horizontal financial statements model.

During Year $2$ Junker's Stash experienced the following business events:

Pald cash to purchase $$82,000$ of merchandise inventory.

The goods that were purchased in Event $1$ were dellvered FOB destination. Transportation costs of $$1,640$ were pald in cash by the

responsible party.

$3$a$.$ Sold merchandse for $$90,000$ under terms $\frac{1}{10},\frac{n}{30}.$

$3$b$.$ Recognized $$47,900$ of cost of goods sold.

$4$a$.$ Junker's Stash customers returned merchandise that was sold for $$2,340.$

$4$b$.$ The merchandise returned in Event $4$a had cost Junker's Stash $$1,370.$

The merchandise in Event $3$a was sold to customers FOB destination. Transportation costs of $$1,770$ were pald in cash by the

responsible party.

$6$a$.$ The customers paid for the merchandise sold in Event $3$a within the discount perlod. Recognized the sales discount,

$6$ b$.$ Collected the balance in the accounts recelvable account.

Pald cash of $$7,150$ for selling and administrative expenses.

Sold the land for $$9,700$ cash.

Required

a$.$ Record the transactions in a horizontal financial statements model.

b$.$ Determine the amount of net sales.

c$.$ Prepare a multistep income statement. Include common size percentages on the income statement.

d$.$ The return$-$on$-$sales ratio for Junker's Stash during the prior year was $12$ percent. Based on the common size data in the income

statement, did the expenses for Junker's Stash Increase or decrease In Year $2?$ Assume sales are the same for both years.

Complete this question by entering your answers in the tabs below.

The return$-$on$-$sales ratio for Junker's Stash during the prior year was $12$ percent. Based on the common size data in the

income statement, did the expenses for Junker's Stash increase or decrease in Year $2?$ Assume sales are the same for both

years.

Did the expenses for Junker's Stash increase or decrease in Year $2?$

Required C