On December 1, 2022, Sunland Company had the account balances shown below. Debit Credit Cash $4,800 Accumulated DepreciationEquipment $1,100 Accounts Receivable 5,000 Accounts Payable 3,000 Inventory 2,400 * Owners Capital 33,100 Equipment 25,000 $37,200 $37,200 *(4,000 x $0.60) The following transactions occurred during December: Dec. 3 Purchased 4,400 units of inventory on account at a cost of $0.70 per unit. 5 Sold 4,900 units of inventory on account for $0.86 per unit. (Sunland sold 4,000 of the $0.60 units and 900 of the $0.70.) 7 Granted the December 5 customer $165 credit for 200 units of inventory returned costing $110. These units were returned to inventory. 17 Purchased 2,000 units of inventory for cash at $0.76 each. 22 Sold 3,000 units of inventory on account for $0.91 per unit. (Sunland sold 3,000 of the $0.70 units.) Adjustment data: 1. Recognized accrued salaries payable $500. 2. Recognized depreciation $320 per month.

Date Dec. 3 Dec. 5 Dec. 5 Dec. 7 Dec. 7 Dec. 17 > Account Titles and Explanation Inventory Accounts Payable Accounts Receivable Sales Revenue (To record sales revenue.) Cost of Goods Sold Inventory (To record cost of goods sold.) Sales Returns and Allowances Accounts Receivable (To record sales returns.) Inventory Cost of Goods Sold (To record cost of sales returns.) Inventory Cash Debit 3080 4214 3030 165 110 1520 Credit 3080 4214 3030 165 110 1520 Dec. 22 V Dec. 22 v Dec. 31 v Dec. 31 Accounts Receivable Sales Revenue (To record sales revenue.) Cost of Goods Sold Inventory (To record cost of goods sold.) Salaries and Wages Expense Salaries and Wages Payable (To record accrued expense.) Depreciation Expense Accumulated Depreciation-Equipment (To record depreciation expense.) 2730 2100 500 320 2730 2100 500 320 Enter the December 1 balances in the ledger T-accounts and post the December transactions. (Post ent entries presented above.) Cash Dec. 5 Dec. 22 Dec. 1 Bal. 165 Dec. 5 Dec. 22 Dec. 31 Bal. Dec. 1 Bal. Dec. 3 Dec. 7 Dec. 17 Dec. 31 Bal. 4835 2730 Accounts Receivable 5000 Dec. 7 4214 2730 11779 Inventory 2400 3080 110 1520 1980 Dec. 5 Dec. 22 000 3030 2100 100 Equipment Accounts Payable Dec. 1 Bal. Accumulated Depreciation-Equipment Dec. 1 Bal. Dec. 31 Dec. 31 Bal. Salaries and Wages Payable Dec. 31 Dec. 31 Bal. Dec. 5 Dec. 22 4214 2100 3000 1100 320 1420 500 500