Dec Sheridan Company began operating on October 1, 2022. It prepares monthly financial statements. A tabular summary including Information as of December 1, 2022 is shown below in the instructions. Note that the Inventory balance of $4,500 is based on 7,500 units costing $0.60 per unit. Also, the 542,500 balance in Retained Earnings represents the results for the first two months of operations. The following transactions occurred during December Purchased 10.000 units of Inventory on account at a cost of $0.70 per unit 3 Sold 11,000 units of inventory on account for $0.90 per unit. (Sheridan sold 7,500 of the 50.60 units and 3.500 of the $0.70) Granted the December 5 customer $450 credit for 500 units of Inventory returned costing $370. These units were returned to inventory Purchased 5,500 units of inventory for cash at $0,60 each Sold 5,000 unit of inventory on account for $0.95 per unit (Sheridan sold 5,000 of the $0.70 units) 5 7 17 22 Adjustment data 1 2 Accrued salaries and wages payable $1,000 Depreciation on equipment $500 per month Income tax expense was $546, to be paid next year 3. Cash Rec. Inventory 12/1/Bal $12,000 $9.750 $4,500 Dec 3 0 7000 5 0 9.900 0 7 0 0 17 -4400 4.400 22 D I. 100.00 0 Unadj. Bal. 7.600 Adj. (A1) 0 (A2) 0 (A3) 0 Adj. Bal $ 7,600 $ Retained Earnings $42,500 Rev. Exp. Div Sales revenue 9.900 6,950 Sales revenue Cost of roods sold Cost of goods sold 1.. Depreciation expense Sales returns & allowances Salaries & wages payable Income tax expense Cost of goods sold Sales revenue - 1,000 Salaries & wages payable -500 i Depreciation expense -546 Income tax expense