College Coasters is a San Diegobased merchandiser specializing in logo-adorned drink coasters. The company reported the following balances in its unadjusted trial balance at December 1. Cash $ 8,600 Accounts Receivable 1,860 Inventory 500 Prepaid Rent 660 Equipment 750 Accumulated Depreciation 90 Accounts Payable 1,250 Salaries and Wages Payable 300 Income Taxes Payable 0 Common Stock 5,600 Retained Earnings 3,000 Sales Revenue 14,350 Cost of Goods Sold 7,920 Rent Expense 1,210 Salaries and Wages Expense 1,800 Depreciation Expense 90 Income Tax Expense 0 Office Expense 1,200 The company buys coasters from one supplier. All amounts in Accounts Payable on December 1 are owed to that supplier. The inventory on December 1 consisted of 1,000 coasters, all of which were purchased in a batch on July 10 at a unit cost of $0.50. College Coasters records its inventory using perpetual inventory accounts and the FIFO cost flow method. During December, the company entered into the following transactions. Some of these transactions are explained in greater detail below. Purchased 400 coasters on account from the regular supplier on 12/1 at a unit cost of $0.52, with terms of n/60. Purchased 900 coasters on account from the regular supplier on 12/2 at a unit cost of $0.55, with terms of n/60. Sold 1,900 coasters on account on 12/3 at a unit price of $1.10. Collected $1,000 from customers on account on 12/4. Paid the supplier $1,440 cash on account on 12/18. Paid employees $430 on 12/23, of which $250 related to work done in November and $180 was for wages up to December 22. Loaded 90 coasters on a cargo ship on 12/31 to be delivered the following week to a customer in Kona, Hawaii. The sale was made FOB destination with terms of n/60. Other relevant information includes the following at 12/31: College Coasters has not yet recorded $170 of office expenses incurred in December on account. The company estimates that the equipment depreciates at a rate of $10 per month. One month of depreciation needs to be recorded. Wages for the period from December 2331 are $100 and will be paid on January 15. The $660 of Prepaid Rent relates to a six-month period ending on May 31 of next year. The company incurred $700 of income tax but has made no tax payments this year. No shrinkage or damage was discovered when the inventory was counted on December 31. The company did not declare dividends and there were no transactions involving common stock.