Adjusting Inventory and Closing Entries (Periodic Method)

As of December 31, 2009, Whitney Company had the following account balances:

A physical count of inventory on December 31, 2009, showed $104,000 of ending inventory.
Prepare the closing entries that are needed to adjust the inventory records and close the related purchases accounts, assuming that the periodic inventory method is used.

Transcribed Image Text:

Inventory (beginning) Purchases Purchase returns $140,000 230,000 6,000