Shankar Company uses a perpetual system to account for inventory transactions. The company purchases inventory on account on February 2 for $40,000 and then sells this inventory on account on March 17 for $60,000. Determine the financial statement effects of the purchase of inventory on account and sale of inventory on account. Complete this question by entering your answers in the tabs below. Purchase Sale Determine the financial statement effects of the purchase of inventory on account. Note: Amounts to be deducted should be indicated by a minus sign. Inventory Balance Sheet Assets Liabilities Stockholders' Equity Common Retained Stock Revenues Earnings $ 40,000 Accounts Payable $ 40,000 Phase Sale > Income Statement Expenses Net Income