In March 2016, the Phillips Tool Company signed two purchase commitments. The first commitment requires Phillips to purchase inventory for $120,000 by June 15, 2016. The second commitment requires the company to purchase inventory for $170,000 by August 20, 2016. The company's fiscal year-end is June 30. Phillips uses a periodic inventory system.

The first commitment is exercised on June 15, 2016, when the market price of the inventory purchased was $95,000. The second commitment was exercised on August 20, 2016, when the market price of the inventory purchased was $130,000.

1. Record the purchase of inventory related to the first purchase commitment (June 15).

2. Record any necessary adjusting entry related to the second purchase commitment (June 30).

3. Record the purchase of inventory related to the second purchase commitment (Aug 20).