Effects of Transactions on the Inventory Account-Perpetual System Rand Wholesale Company purchases merchandise from a variety of manufacturers and sells the merchandise to a variety of retailers. All sales are subject to a cash discount (2/10, n/30). Rand has a perpetual inventory system. The February 1 balance in Rand's Inventory account was a $50,000 debit. The following transactions occurred during February: Feb 2 Purchased $8,600 of merchandise from Sweet Manufacturing terms are 1/10, n/30. 5 Paid $270 freight on the February 2 purchase. 11 Paid Sweet for the February 2 purchase. 13 Purchased $5,000 of merchandise from Tayler Manufacturing; terms are 2/10, n/45. 16 Received a $300 allowance on the February 13 purchase since some of the merchandise was the wrong size. All of the merchandise is salable at regular prices. 17 Purchased $5,200 of merchandise from Zorn Industries; terms are 2/10, n/30. 20 Sold merchandise with a list price of $3,000 ($1,200 cost) to Valley Mart. 22 Valley Mart returned 30 percent of the merchandise from the February 20 sale. 23 Paid Tayler Manufacturing for the February 13 purchase. 28 Paid Zorn Industries for the February 17 purchase. 0 Required Prepare a schedule that shows the impact of these transactions on Rand's Inventory account. Use the following headings: Date Transaction Debit Amount Credit Amount Account Balance Feb. 1 Balance $ 0 $ OS 50,000 2 Purchase - Sweet 8,600 O 58,600 5 Freight - Sweet 270 58,870 11 Payment - Sweet 0 86 58,784 13 Purchase - Tayler 5,000 O 63,784 16 Purchase allowance - Tayler 0 300 63,484 17 Purchase - Zorn 5,200 0 68,684 20 Sale - Valley Mart 0 1,200 67,484 22 Sales return - Valley Mart 360 67,844 23 Payment - Tayler 0 4,606 x 63,944 x 28 Payment - Zorn 0 4,606 x 114 X 0