On December 1, 2022, Crane Company had the account balances shown below.Debit CreditCash $5,500 Accumulated Depreciation—Equipment $1,500Accounts Receivable 4,200 Accounts Payable 3,600Inventory 2,400 * Owner’s Capital 27,000Equipment 20,000$32,100 $32,100*(4,000 x $0.60)The following transactions occurred during December:Dec. 3 Purchased 4,200 units of inventory on account at a cost of $0.74 per unit.5 Sold 4,600 units of inventory on account for $0.90 per unit. (Crane sold 4,000 of the$0.60 units and 600 of the $0.74.)7 Granted the December 5 customer $201 credit for 200 units of inventory returnedcosting $134. These units were returned to inventory.17 Purchased 2,200 units of inventory for cash at $0.80 each.22 Sold 3,100 units of inventory on account for $0.95 per unit. (Crane sold 3,100 of the$0.74 units.
On December 1, 2022, Crane Company had the account balances shown below.
Debit Credit
Cash $5,500
Accounts Receivable 4,200 Accounts Payable 3,600
Inventory 2,400 * Owner’s Capital 27,000
Equipment 20,000
$32,100 $32,100
*(4,000 x $0.60)
The following transactions occurred during December:
Dec. 3 Purchased 4,200 units of inventory on account at a cost of $0.74 per unit.
5 Sold 4,600 units of inventory on account for $0.90 per unit. (Crane sold 4,000 of the
$0.60 units and 600 of the $0.74.)
7 Granted the December 5 customer $201 credit for 200 units of inventory returned
costing $134. These units were returned to inventory.
17 Purchased 2,200 units of inventory for cash at $0.80 each.
22 Sold 3,100 units of inventory on account for $0.95 per unit. (Crane sold 3,100 of the
$0.74 units.
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