E 2-7 Journal entries, debits and credits - LO2-3 Some of the ledger accounts for the Sanderson Hardware Company are numbered and listed below. For each of the October 2021 transactions numbered 1 through 10 below, indicate by account number which accounts should be debited and which should be credited when preparing journal entries. The company uses the perpetual inventory system. (1) Accounts payable (2) Equipment (3) Inventory (4) Accounts receivable (5) Cash (6) Supplies (7) Supplies expense (8) Prepaid rent (9) Sales revenue (10) Retained earnings (11) Notes payable (12) Common stock (13) Deferred sales revenue (14) Rent expense (15) Salaries payable (16) Cost of goods sold (17) Salaries expense (18) Interest expense (19) Dividends Account(s) Debited Account(s) Credited Example: Purchased inventory for cash page 94 1. Paid a cash dividend. 2. Paid rent for the next three months. 3. Sold goods to customers on account 4. Purchased inventory on account. 5. Purchased supplies for cash. 6. Issued common stock in exchange for cash. 7. Collected cash from customers for goods sold in 3. 8. Borrowed cash from a bank and signed a note 9. At the end of October, recorded the amount of supplies that had been used during the month. 0. Received cash for advance payment from customer