Accounting Cycle Review 6 a-f On December 1, 2020, Waterway Company had the account balances shown below. Debit Credit Cash Accounts Receivable $5,400 3,000 2,400* 23,000 $33,800 Accumulated Depreciation Equipment Accounts Payable Owner's Capital $1,500 4,000 28,300 Inventory Equipment $33,800 *(4,000 x $0.60) The following transactions occurred during December: Dec. 3 Purchased 4,600 units of inventory on account at a cost of $0.78 per unit. 5 Sold 4,900 units of inventory on account for $0.94 per unit. (Waterway sold 4,000 of the $0.60 units and 900 of the $0.78.) 7 Granted the December 5 customer $159 credit for 200 units of inventory returned costing $106. 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. (Waterway sold 3,200 of the $0.78 units.) Adjustment data: 1. Accrued salaries payable $500. 2. Depreciation $280 per month. |x Your answer is incorrect. Try again. (e) Compute ending inventory and cost of goods sold under FIFO, assuming Waterway Company uses the periodic inventory system. Ending Inventory $ Cost of Goods Sold Compute ending inventory and cost of goods sold under LIFO, assuming Waterway Company uses the periodic inventory system. Ending Inventory $ Cost of Goods Sold