Prepare a schedule that shows the impact of these transactions on Watts inventory account. Use the following headings:

LEARNING OR QUESTION 5 Not complete Marked out of 1.00 Flag question Effects of Transactions on the Inventory Account-Perpetual System Watt Wholesale Company purchases merchandise from a variety of manufacturers and sells the merchandise to a variety of retailers. All sales are subject to a cash discount (2/10, n/30). Watt uses a perpetual inventory system. The May 1 balance in Watt's Inventory account was a $110,.000 debit. The following transactions occurred during May May 2 Purchased $9,500 of merchandise from Ajax Manufacturing terms are 1/10, n/30. 4 Paid $210 freight on the May 2 purchase 12 Paid Ajax for the May 2 purchase. 14 Purchased S8,000 of merchandise from Baker Manufacturing terms are 2/10, n/45. Received a s$700 allowance on the May 14 purchase since some of the merchandise was the wrong color. All of 16 the merchandise is salable at regular prices 18 Purchased s7,500 of merchandise from Charles Industries terms are 2/10, n/so. 19 Sold merchandise with a list price of $7,000 ($6.200 cost) to Daytime industries 22 Daytime Industries returned 30 percent of the merchandise from the May 19 sale. 26 Paid Baker Manufacturing for the May 14 purchase 29 Paid Charles Industries for the May 18 purchase. 7.500 Required Prepare a sch following headings edule that shows the impact of these transactions on Watt's Inventory account. Use the