Litton Industries uses a perpetual inventory system. The company began its fiscal year with inventory of $277,000. Purchases of merchandise on account during the year totaled $895,000. Merchandise costing $912,000 was sold on account for $1,520,000. Determine the financial statement effects of these transactions. Complete this question by entering your answers in the tabs below. Determine the financial statement effects of the purchase of inventory on account. Note: Amounts to be deducted should be indicated by a minus sign. e the financial statement effects of the sale of inventory on account. lounts to be deducted should be indicated by a minus sign