During the year, HHEC.com purchases and sells inventory; however, Sophia is unsure of the proper way to record these transactions. She therefore gives you a list of transactions and asks you to show her how to properly record (journalize) the purchase and sale of inventory under a perpetual inventory system.

HHEC Task 1: During the year, HHEC.com purchases and sells inventory; however, Sophia is unsure of the proper way to record these transactions. She therefore gives you a list of transactions and asks you to show her how to properly record (journalize) the purchase and sale of inventory under a perpetual inventory system. HAPPY HOME Environmental Cleaning During the month of January Year 3, HHEC.Com completed the following merchandising transactions. January 1 January 5 January 9 January 12 January 20 January 22 January 28 January 30 Purchased merchandise on account from Riverhilll.Com $21,000, terms 2/10, n/30. Sold Merchandise on account for $4,200, terms 1/10, n30. The cost of the merchanse sold was $2,600. Received credit from Riverhill.com for merchandise returned $600. Received collections in full, less discounts from customers billed on sales of $4,200 on January 5. Paid Riverhill.com in less discount Purchased merchandise for cash $2,800 Sold merchandise for cash $6,400. The merchandise sold cost $4,000 Sold merchandise on account $2,000 n/30. The cost of the merchanise sold was $1,120. Answer: Debit Credit