Calculation and Journal Entry Practice:

1. Firm A begins 2020 with $100,000 in inventory. During the year, Firm A has the following inventory transactions:

1.	Sales made to customers (on account)	400,000
2.	Cost of inventory sold	240,000
3.	Inventory purchases (on account)	400,000
4.	Inventory returned to suppliers (for credit)	60,000
5.	Freight-in paid for inventory purchases (paid in cash)	12,000
6.	Freight-out paid to deliver goods to customers (paid in cash)	15,000

a. Assume Firm A uses a perpetual inventory system, prepare journal entries (if necessary) for the six transactions:

b. Assume Firm A uses a periodic inventory system and a physical count of ending inventory indicates there is $212,000 in inventory at the end of the fiscal year. Prepare journal entries (if necessary) for the six transactions AND the fiscal year end adjusting entry: