Adjustment for Merchandise Inventory Using T Accounts: Periodic Inventory System Sandra Owens owns a business called Sandra's Sporting Goods. Her beginning inventory as of January 1, 20--, was $30,200, and her ending inventory 31, 20--, was $35,540. Set up T accounts for Merchandise Inventory and Income Summary and perform the year-end adjustment for Merchandise Inve Merchandise Inventory (Beginning Inventory) 30,200 Income Summary