The Gift Horse began 2021 with 60,000 units of inventory that cost $36,000. During 2021, The Gift Horse purchased merchandise on account for $352,500: (Click the icon to view the purchases.) Cash payments on account totaled $326,000 during the year (ignore purchase discounts). The Gift Horse's sales during 2021 consisted of 520,000 units of inventory for $660,000, all on account. The company uses the FIFO inventory method. Cash collections from customers were $630,000. Operating expenses totaled $240,500, of which The Gift Horse paid $211,000 in cash. The Gift Horse credited Accrued Liabilities for the remainder. At December 31, The Gift Horse accrued income tax expense at the rate of 35% of income before tax. Read the requirements. Net income Requirement 3. Make summary journal entries to record The Gift Horse's transactions for the year, assuming the company uses a perpetual inventory system. Explanations are not required. (Record debits first, then credits. Exclude explanations from any journal entries.) Begin with the single entry to record the purchases. Journal Entry Date Accounts Debit Credit Cost of Goods Sold 520000 Inventory 520000