The following information is available for the Johnson Corporation for 2018:

Beginning inventory	$	31,000
Merchandise purchases (on account)		161,000
Freight charges on purchases (paid in cash)		16,000
Merchandise returned to supplier (for credit)		18,000
Ending inventory		36,000
Sales (on account)		256,000
Cost of merchandise sold		154,000

Required: Applying both a perpetual and a periodic inventory system, prepare the journal entries that summarize the transactions that created these balances. Include all end-of-period adjusting entries indicated.

1. Record merchandise purchased on account for $161,000.

2. Record the payment of $16,000 in cash for freight charges.

3. Record merchandise returned to supplier for credit of $18,000.

4. Record sales on account of $256,000.

5 Record cost of merchandise sold of $154,000.

6. Record the end-of-period adjusting entry. Ending inventory is $36,000.