Accounting Cycle Review 6 a-f On December 1, 2020, Vaughn Company had the account balances shown below. Debit Credit Cash $4,800 Accumulated Depreciation-Equipment $1,500 Accounts Receivable 3,500 Accounts Payable 3,000 Inventory 2,400* Owner's Capital 31,200 Equipment 25,000 $35,700 $35,700 *(4,000 x $0.60) 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. Journalize the December transactions and adjusting entries, assuming Vaughn uses the perpetual inventory method. (Credit account titles are automatically Indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit