Instructions For each transaction below ("a"through "9"), record the necessary journal entry. Your business is using a perpetual inventory system, which means they record journal entries for changes in their inventory on a daily basis (as each transaction occurs). Utilize the "Chart of Accounts" below for help in choosing accounts for each entry. 1 2 3 Chart of Accounts Cash Accounts Receivable Supplies Inventory Prepaid Rent Vehicles Accounts Payable Deferred Revenue Wages Payable Notes Payable Common Stock Retained Earnings Sales Revenue Sales Returns & Allowances Service Revenue Cost of Goods Sold Insurance Expense Rent Expense Supplies Expense Wage Expense 36 37 a) On 12/2, you obtained a loan from Wells Fargo for $40,000 38 39 Date Account Description Debit Credit 40 12/2/20 1 42 13 14 5b) On 12/5, you purchased 700 pairs of yoga pants for $5 per pair, paying for the pants in cash. 6 Date Debit 7 Account Description Credit 3 12/5/20 3 c) Due to perceived strong demand for your yoga pants, on 12/8, you purchased another 400 pairs of yoga pants for $5 per pair, paying for the pants in cash. Debit Credit Date Account Description 12/8/20 d) On 12/15, your company makes it's first sale, selling 200 pairs of yoga pants to Lululemon for $32 per pair. The sale is made on account, and to encourage prompt payment you provide payment terms to Lululemon of 2/10, n/30. Debit Credit Date Account Description 12/15/20 On 12/18, Lululemon returns 15 pairs of pants that were defective Debit Credit Date Account Description 12/18/20 "S 6 7 8 9 0 1 2 12/18/20 0 On 12/31, paid December's rent of $2,000 in cash. Credit Debit Date 12/31/20 Account Description On 12/31, received payment for the 185 yoga pants sold (200 pairs sold on 12/15, 15 returned on 12/18). Debit Credit Date Account Description 12/31/20