On December 1, 2022, Matthias Company had the following account balances. Cash Accounts Receivable Inventory Equipment Debit $4,300 4,300 1.740 20,100 $30,440 Accumulated Depreciation-Equipment Accounts Payable Common Stock Retained Earnings Credit $1,400 3,100 20,000 5,940 $30,440 *12.900 x $0.60) 5 The following transactions occurred during December. Dec. 3 Purchased 3,900 units of inventory on account at a cost of $0.72 per unit. Sold 4,600 units of inventory on account for $0.90 per unit. (Matthias sold 2,900 of the $0.60 units and 1,700 of the $0.72.) Granted the December 5 customer $180 credit for 200 units of inventory returned costing $144. These units were returned to inventory. 17 Purchased 2,400 units of Inventory for cash at $0.80 each. 22 Sold 1.900 units of inventory on account for $0.95 per unit. (Matthias sold 1,900 of the $0.72 units.) 7 Adjustment data: 1. 2. Accrued salaries payable $430 Depreciation $200 per month Credit Date Account Titles and Explanation Dec. 3 Merchandise Inventory Accounts Payable Debit $280.8 $280.8 $4,140.0 Dec. 5 Accounts Receivable Sales Revenue (To record Sales Revenue) $4,140.0 $2,964.0 Cost of Goods sold Merchandise Inventory (To record cost of goods sold) $2,964.0 $180.0 $180.0 Dec. 7 Sales Return Accounts Receivable (To record sales return) Merchandise Inventory Cost of Goods sold (To record cost of goods sold) $144.0 $144.0 Dec. 17 Merchandise Inventory Accounts Payable $1,920.0 $1,920.0 $1,805.0 $1,805.0 $1,368.0 $1,368.0 Dec. 22 Accounts Receivable Sales Revenue (To record Sales Revenue) Cost of Goods sold Merchandise Inventory (To record cost of goods sold) Adjustment entries Date Account Titles and Explanation Dec. 31 Salaries expense Salaries Payable (To record accrued expense) Credit Debit $430 $430 $200 Dec. 31 Depreciation expense Accumulated Depreciation (To record depreciation expense) $200 I hope this clear your doubt. Feel free to comment if you still have any query or need something else. I'll help asap. Enter the December 1 balances in the ledger T-accounts and post the December transactions. In addition to the accounts mentioned above, use the following additional accounts: Cost of Goods Sold, Depreciation Expense, Salaries and Wages Expense, Salaries and Wages Payable, Sales Revenue, and Sales Returns and Allowances. (Post entries in the order of journal entries presented above.) Cash Accounts Receivable Inventory . Equipment Accumulated Depreciation-Equipment Accounts Payable Salaries and Wages Payable Common Stock Retained Earnings 4 Sales Revenue Sales Returns & Allowances Cost of Goods Sold Salaries and Wages Expense Depreciation Expense