ES Comprehensive Accounting Cycle Review 06 On December 1, 2022, Waterway Industries had the account balances shown below. Debits Cash $5,220 Accumulated Depreciation-Equipment dy Accounts Receivable 3,930 Accounts Payable Inventory (2,700 x $0.60) Equipment 1,620 Common Stock 21,600 $32,370 Retained Earnings Credits $1,640 2,790 9,000 18,940 $32,370 CALCU The following transactions occurred during December. Dec. 3 Purchased 3,700 units of inventory on account at a cost of $0.71 per unit. 5 Sold 4,100 units of inventory on account for $0.90 per unit. (It sold 2,700 of the $0.60 units and 1,400 of the $0.71.) 7 Granted the December 5 customer $270 credit for 300 units of inventory returned costing $240. These units were returned to inventory. 17 Purchased 2,400 units of inventory for cash at $0.80 each. 22 Sold 2,300 units of inventory on account for $0.95 per unit. (It sold 2,300 of the $0.71 units.) Adjustment data: 1. Accrued salaries and wages payable $460. 2. Depreciation on equipment $190 per month. 3. Income tax expense was $220, to be paid next year. Journalize the December transactions and adjusting entries, assuming Waterway Industries uses the perpetual inventory method. (Credit account titles are amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)