Refer to the information in BE6–10. Determine the financial statement effects for (a) the purchase of inventory on account and (b) the sale of inventory on account.

Data from in BE6-10

Shankar Company uses a perpetual system to record inventory transactions. The company purchases inventory on account on February 2 for $40,000 and then sells this inventory on account on March 17 for $60,000. Record transactions for (a) the purchase of inventory on account and (b) the sale of inventory on account.