College Coasters is a San Diego-based merchandiser specializing in logo-adorned drink coasters. The company reported the following balances in its unadjusted trial balance at December 1. Cashi $ 9,400 Accounts Receivable 1,780 Inventory 450 Prepaid Rent 540 Equipment 830 Accumulated Depreciation 100 Accounts Payable 1,230 Salaries and Wages Payable 300 Income Taxes Payable Common Stock 5,900 Retained Earnings 2,700 Sales Revenue 13,980 Cost of Goods Sold 7,120 Rent Expense 990 Salaries and Wages Expense 1,700 Depreciation Expense Income Tax Expense 100 1,300 Office Expense 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 900 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. a. Purchased 500 coasters on account from the regular supplier on 12/1 at a unit cost of $0.52, with terms of n/60. b. Purchased 900 coasters on account from the regular supplier on 12/2 at a unit cost of $0.55, with terms of n/60. c. Sold 1,800 coasters on account on 12/3 at a unit price of $1.10. d. Collected $870 from customers on account on 12/4. e. Paid the supplier $1,390 cash on account on 12/18. Paid employees $430 on 12/23, of which $270 related to work done in November and $160 was for wages up to December 22. g. Loaded 100 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.