3.6 End-ofChapter Exercises The following events occur during August: a. Webworks decides to begin selling a limited selection of inventory items related to its business. During August, Webworks purchases several specialty keyboards for $4,900 and ash drives for $3,200 both on account with the hopes of selling them to Web site customers or others who might be interested. Due to the limited quantity of inventory, Webworks will use a periodic system. . Webworks purchases supplies for $100 on account. . Webworks starts and completes six more Web sites and bills those clients a total of $2,700. . Injuly, Webworks received $500 in advance to design two Web sites. Webworks also completes both of these sites during August. . Webworks collects $2,400 in accounts receivable. . Webworks pays Nancy Po [the company employee hired injune} $600 for her work during the rst three weeks of August. . Injune, Webworks designed a Web site for Pauline Smith and billed her. Unfortunately, before she paid this bill completely, Ms. Smith's business folded. Webworks is not likely to collect any of the remaining money and writes off the $100 balance as uncollectible. 442