On December 1, 2022, Matthias Company had the following account balances. Cash Accounts Receivable Inventory Equipment *(2,900 x $0.60) Dec. 3 5 7 The following transactions occurred during December. 17 Debit Date $4,300 3,700 1,740 Dec. 31 20,300 $30,040 (1) Accumulated Depreciation-Equipment Accounts Payable Common Stock Retained Earnings (2) Granted the December 5 customer $270 credit for 300 units of inventory returned costing $216. These units were returned to inventory. Purchased 2,500 units of inventory for cash at $0.80 each. 22 Sold 2,500 units of inventory on account for $0.95 per unit. (Matthias sold 2,500 of the $0.74 units.) Credit $1,600 Purchased 3,900 units of inventory on account at a cost of $0.74 per unit. Sold 4,200 units of inventory on account for $0.90 per unit. (Matthias sold 2,900 of the $0.60 units and 1,300 of the $0.74.) Journalize the December transactions, assuming Matthias uses the perpetual inventory method. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) 2,900 Journalize the adjusting entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) Account Titles and Explanation 18,200 (To record accrued expense) 7,340 (To record depreciation expense) $30,040 Debit Credit

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.