Fleming Machinery uses the periodic method of inventory accounting 1. Journalize the following transactions relating to the company's purchases in 2000 :

Jan. 21 Purchased $\$ 8,000$ of inventory on credit, terms $2 / 10, \mathrm{n} / 30$.

30 Paid $\$ 7,840$ to pay off the debt from the January 21 purchase.

Mar. 14 Purchased $\$ 125,000$ of inventory on credit, terms $2 / 10, n / 30$. Paid $\$ 500$ in cash for transportation.

Apr. 1 Returned defective machinery worth $\$ 20,000$ to manufacturer.

13 Paid $\$ 105,000$ to pay off the debt from the March 14 purchase.

2. Assuming these were the only purchases in 2000 , compute the cost of goods sold. Beginning inventory was $\$ 13,000$ and ending inventory was $\$ 22,000$.