Refer to the situation described in BE 8–2. Prepare the journal entries to record these transactions using a periodic inventory system.

Data from in BE 8-2

A company uses a perpetual inventory system. The company began its fiscal year with inventory of $267,000. Purchases of inventory on account during the year totaled $845,000. Inventory costing $902,000 was sold on account for $1,420,000. Prepare the journal entries to record these transactions.