Presented below are selected accounts from the chart of accounts of Wildhorse Company. 101 Cash 401 Sales Revenue 112 Accounts Receivable 412 Sales Returns and Allowances 120 Inventory 4141 Sales Discounts 126 Supplies 505 Cost of Goods Sold 157 Equipment 726 Salaries and Wages Expense 201 Accounts Payable The cost of all merchandise sold was 60% of the sales price. During January, Wildhorse completed the following transactions. Jan. Purchased merchandise on account from Gallagher Co. $10,000. 3 4 Purchased supplies for cash $60.