Required:Prepare journal entries for each of the following transactions under the Perpetual Inventory methodinclude recording date and all required revenue, expense and balance sheet accounts.The Widget Company sells only one product (widgets) and uses FIFO.December 31, 2019 inventory is as follows:

Date purchased

Quantity

Unit cost

December 5, 2019

1,500

$5.34

December 20, 2019

700

$5.48

December 28, 2019

500

$5.40

1.January 2, 2020:Received 1,000 widgets with a unit cost of $6.00.The units were shipped from the supplier on December 29, 2019 FOB shipping point.The widgets were not included in the December 31, 2019 inventory.Payment terms are 2/10, net 30.The company uses the Net Method for recording payment discounts.

2.January 5, 2020:Sold 3,000 widgets for $11.00 each and shipped FOB shipping point.Payment terms are 1/10, net 30.The company uses the Gross Method for recording sales discounts.

3.January 6, 2020:Paid in full for the 1,000 widgets received on January 2, 2020.

4.January 10, 2020:Customer returned 200 of the widgets sold and shipped on January 5, 2020.All items were in excellent condition and returned to inventory.

5.January 15, 2020:Received 2,500 widgets with unit cost of $5.90.Payment terms are net 30no payment discount offered.Atlas Freight Company billed Widgets $250.00 for delivering the widgets and Widgets paid Atlas immediately.

6.Calculate the following for January 2020:

a.Inventory quantity on hand and account balance at the end of the month

b.Net Sales, Cost of Goods Sold and Gross Profit for January 2020