102 X fx A B C D E F G Instructions For each transaction below ("a" through "g"), record the necessary journal entry. Your business is using a perpetual inventory system, which means they record journal entries for changes in their inventory on a daily basis (as each transaction occurs). Utilize the "Chart of Accounts" below for help in choosing accounts for each entry. Chart of Accounts Cash Accounts Receivable Supplies Inventory Prepaid Rent Vehicles Accounts Payable Deferred Revenue Wages Payable Notes Payable Common Stock Retained Earnings Sales Revenue Sales Returns & Allowances Service Revenue Cost of Goods Sold Insurance Expense Rent Expense Supplies Expense Wage Expense Excel #5 - Ch. 6 35 36 37 a) On 12/2, you obtained a loan from Wells Fargo for $40,000. 38 39 40 Date Account Description 12/2/2020 41 42 43 Debit Credit 44 45 b) On 12/5, you purchased 700 pairs of yoga pants for $5 per pair, paying for the pants in cash. 46 47 Date Account Description Debit Credit 48 12/5/2020 49 50 51 52 c) 53 Due to perceived strong demand for your yoga pants, on 12/8, you purchased another 400 pairs of yoga pants for $5 per pair, paying for the pants in cash. 54 55 Date Account Description Debit Credit 56 12/8/2020 57 58 59 80 E G d) On 12/15, your company makes it's first sale, selling 200 pairs of yoga pants to Lululemon for $32 per pair. The sale is made on account, and to encourage prompt payment you provide payment terms to Lululemon of 2/10, n/30. Date Account Description 12/15/2020 Debit Credit 12/15/2020 e) On 12/18, Lululemon returns 15 pairs of pants that were defective. Date Account Description Debit 12/18/2020 12/18/2020 Event He Credit 84 85 f) On 12/31, paid December's rent of $2,000 in cash. 86 87 Date Account Description Debit Credit 88 12/31/2020 89 90 91 92 g) 93 On 12/31, received payment for the 185 yoga pants sold (200 pairs sold on 12/15, 15 returned on 12/18). 94 95 Date Account Description Debit Credit 96 12/31/2020 97 98 99