21) April 4, 2020 Smith and West, who uses the periodic inventory system, purchased 1000 widgets from ABC company on account, at a cost of $5 each. HST is applied and they charged the goods, P1-26. Terms: 5/10 n/30. What would be the journal entry to record this transaction? 1. Debit - Purchases $5,000, HST Recoverable $650 Credit - Cash $5,650 2. Debit - Cash 55,650>Credit - Purchases $5,000, HST Recoverable $650 3. Debit - Purchases $5,000, HST Recoverable 5650 Credit - A/P-ABC Company S5,650 4. Debit - Purchases $5,000, HST Recoverable $650>Credit - A/P - Smith and Jones $5,650