Recording Inventory Purchases and Sales on Account Record the entries for the following transactions for Shoppers Inc. Shoppers uses a perpetual inventory system and records sales taxes payable at the point of sale. a. On January 1, 2020, Shoppers Inc. purchased merchandise for resale for $42,000 on credit terms 1/15, n/30. Shoppers Inc. incurred a shipping charge of $216 on the purchase, which was immediately paid. Shoppers Inc. uses the gross method to record purchases. b. Shoppers Inc. sells $16,800 of inventory during the first week of January 2020, to customers for $30,000, with a sales tax rate of 5%. Of the total sales for the week, 30% are cash sales, and 70% are credit sales (n/30). c. On January 14, 2020, Shoppers Inc. pays the balance for purchases on account. d. Assume instead that Shoppers Inc. sells $18,000 of inventory during the first week of January 2020 to customers for $33,600, which includes a 5% sales tax. Of the total sales for the week, 30% are cash sales, and 70% are credit sales. Record the sales entry. Note: Round your answers to the nearest whole dollar. Note: List multiple debits or credits (when applicable) in alphabetical order. Date Account Name Dr. Cr. a. Jan. 1, 2020 To record purchase of inventory. b. Jan. 7, 2020 . To record sale of merchandise Jan. 7, 2020 To record cost of sale of merchandise C. Jan. 14, 2020 > To record payment on account d. Jan. 7, 2020 To record sale of merchandise Jan. 7, 2020 To record cost of sale of merchandise Cash Accounts Receivable Inventory Equipment Copyright Accounts Payable Accrued Compensation Deferred Revenue Estimated Litigation Liability Interest Payable Salaries Payable Sales Taxes Payable Warranty Liability Note Payable Discount on Note Payable Asset Retirement Obligation Sales Revenue Gift Card Breakage Revenue Warranty Revenue Cost of Goods Sold Interest Expense Legal Expense Salaries Expense Warranty Expense Gain on Litigation Settlement Loss on Litigation Settlement