PRENTER VEHCSEON Comprehensive Accounting Cycle Review 6 On December 1, 2017, Waterway Industries had the account balances shown below, 06 Debits ve ycle Credits Cash $4.470 Accumulated Depreciation-Equipment $1,430 Accounts Receivable 3,600 Accounts Payable 3,210 Inventory (2,800 x $0.70) 1,960 Common Stock 10,300 ts by Equipment 21.400 Retained Earnings ve 16,490 $31.430 $31,430 The following transactions occurred during December Dec. 3 Purchased 3,800 units of inventory on account at a cost of $0.75 per unit. 5 Sold 4,200 units of inventory on account for $1.00 per unit. (It sold 2,800 of the $0.70 units and 1.400 of the $0.75.) 7 Granted the December 5 customer $100 credit for 100 units of inventory returned costing $70. These units were returned to inventory 17 Purchased 2,200 units of inventory for cash at $0.90 each. 22 Sold 1.900 units of inventory on account for $0.87 per unit. (It sold 1.900 of the $0.75 units.) Adjustment data: 1. Accrued salaries and wages payable $320. 2. Depreciation on equipment $220 per month 3. Income tax expense was $230, to be paid next year Journalize the December transactions and adjusting entries, assuming Waterway Industries uses 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.)