Accounting Cycle Review 6 a- f On December 1, 2020, Vaughn Company had the account balances shown below. Debit Cash $4,800 Accumulated Depreciation-Equipment Accounts Receivable 3,500 Accounts Payable Inventory 2,400 Owner's Capital Equipment 25,000 $35,700 (4,000 x $0.60) Credit $1,500 3,000 31,200 $35,700 The following transactions occurred during December: Dec. 3 Purchased 4,000 units of inventory on account at a cost of $0.78 per unit. 5 Sold 4,300 units of inventory on account for $0.94 per unit. (Vaughn sold 4,000 of the $0.60 units and 300 of the $0.78.) 7 Granted the December 5 customer $183 credit for 200 units of inventory returned costing $122. These units were returned to inventory. 17 Purchased 2,000 units of inventory for cash at $0.84 each. 22 Sold 3,200 units of inventory on account for $0.99 per unit. (Vaughn sold 3,200 of the $0.78 units.) Adjustment data: 1. Accrued salaries payable $700. 2. Depreciation $280 per month.