As of December 31, 2003, Deer Company had the following account balances: Inventory (beginning). ..... $120,000 PURCHASES <5 emai ee 220,000 Rurchase returns!) see re 4,000 A physical count of inventory on December 31, 2003, showed $92,000 of ending inventory. Prepare the closing entries that are needed to adjust the inventory records and close the related purchases accounts, assuming that the periodic inventory method is used.