On December 1, 2022,Crane Companyhad the account balances shown below.

Debits

Credits

Cash

$5,080

Accumulated DepreciationEquipment

$1,480

Accounts Receivable

3,620

Accounts Payable

2,730

Inventory (3,000x $0.60)

1,800

Common Stock

9,400

Equipment

22,500

Retained Earnings

19,390$33,000$33,000

The following transactions occurred during December.

Dec. 3Purchased4,000units of inventory on account at a cost of $0.73per unit.5Sold4,400units of inventory on account for $0.90per unit. (It sold3,000of the $0.60units and1,400of the $0.73.)7Granted the December 5 customer $270credit for300units of inventory returned costing $240. These units were returned to inventory.17Purchased2,300units of inventory for cash at $0.80each.22Sold2,200units of inventory on account for $0.90per unit. (It sold2,200of the $0.73units.)

Adjustment data:

1.Accrued salaries and wages payable $350.2.Depreciation on equipment $200per month.3.Income tax expense was $220, to be paid next year.

Journalize the December transactions and adjusting entries, assumingCrane Companyuses the perpetual inventory method.(Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)