Shankar Company uses a perpetual system to record inventory transactions. The company purchases inventory on account on February 2 for $50,000. In addition to the cost of inventory, the company also pays $700 for freight charges associated with the purchase on the same day. Required: (a) Determine the financial statement effects for the purchase of inventory on account. (b) Determine the financial statement effects for payment of freight charges. Complete this question by entering your answers in the tabs below. Shankar Company uses a perpetual system to record inventory transactions. The company purchases inventory on account on February 2 for $50,000. In addition to the cost of inventory, the company also pays $700 for freight charges associated with the purchase on the same day. Required: (a) Determine the financial statement effects for the purchase of inventory on account. (b) Determine the financial statement effects for payment of freight charges. Complete this question by entering your answers in the tabs below