Accounting Cycle Review 6a-f On December 1, 2020, Waterway Company had the account balances shown below. Cash Accounts Receivable Inventory Equipment Debit $5,400 3,000 2,400* 23,000 533,800 Accumulated Depreciation-Equipment Accounts Payable Owner's Capital Credit $1,500 4,000 28,300 $33,800 *(4,000 x 50.60) 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 s159 credit for 200 units of inventory retumed 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. entered. Do not indent Journalize the December transactions and adjusting entries, assuming Waterway uses the perpetual Inventory method. (Credit account titles are automatically indented when amount manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To record sales revenue.) (To record cost of goods sold.) (To record sales returns.) V (To record cost of sales returns.) (To record sales revenue.) (To record cost of goods sold.) (To record accrued expense.) (To record depreciation expense.) Enter the December 1 balances in the ledger T-accounts and post the December transactions. (Post entries in the order of journal entries presented above.) Cash Accounts Receivable V Inventory v Equipment Accounts Payable Accumulated Depreciation-Equipment Salaries and Wages Payable Owner's Capital Sales Revenue Salaries and Wages Expense Cost of Goods Sold V Sales Returns & Allowances Depreciation Expense