a. Purchases \(\$ 300\) of inventory on credit.

b. Sells inventory for \(\$ 420\) on credit.

c. Records \(\$ 300\) cost of sales for transaction \(b\).

d. Receives \(\$ 420\) cash toward accounts receivable.

e. Pays \(\$ 300\) cash to settle accounts payable.

Use the financial statement effects template to identify the effects (both amounts and accounts) for these transactions.