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. Cash $ 8,000 Accounts Receivable 1,860 Inventory 400 Prepaid Rent 660 Equipment 750 Accumulated Depreciation 110 Accounts Payable 1,340 Salaries and Wages Payable 300 Income Taxes Payable 0 Common Stock 6,000 Retained Earnings 2,500 Sales Revenue 12,650 Cost of Goods Sold 7,210 Rent Expense 1,210 Salaries and Wages Expense 1,600 Depreciation Expense Income Tax Expense 110 0 1,100 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 1,000 coasters, all of which were purchased in a batch on July 10 at a unit cost of $0.40. 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 $0.42, with terms of n/60. b. Purchased 900 coasters on account from the regular supplier on 12/2 at a unit cost of $0.45, with terms of n/60. c. Sold 1,800 coasters on account on 12/3 at a unit price of $1.00. d. Collected $840 from customers on account on 12/4. e. Paid the supplier $1,490 cash on account on 12/18. f. Paid employees $480 on 12/23, of which $260 related to work done in November and $220 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.