X 0 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 $31,500 on credit terms 1/15, n/30. Shoppers Inc. incurred a shipping charge of $162 on the purchase, which was immediately paid. Shoppers Inc. uses the gross method to record purchases. b. Shoppers Inc. sells $12,600 of inventory during the first week of January 2020, to customers for $22,500, 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 $13,500 of inventory during the first week of January 2020 to customers for $25,200, 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 Cash 28,144 x Inventory Accounts Receivable To record purchase of inventory b. Jan. 7, 2020 Inventory 14,700 X Accounts Receivable 6,300 x Inventory 20,000 x Sales Revenue 1,000 x To record sale of merchandise Jan. 7, 2020 Asset Retirement Obligation 11,200 x Warranty Revenue To record cost of sale of merchandise c. Jan. 14, 2020 Gift Card Breakage Revenue 28,000 X Asset Retirement Obligation 27,720 X Salaries Payable To record payment on account d. Jan. 7. 2020 Warranty Revenue 15,680 X Gift Card Breakage Revenue 6,720 x Note Payable 21,280 x Sales Revenue 1,120 X To record sale of merchandise Jan. 7, 2020 Asset Retirement Obligation 12,000 X Discount on Note Payable 12,000 X To record cost of sale of merchandise X 0 X X X 0 0 0 0 X 0 280 X 0 X 0 X 0 - X 0 X 0 c