Use the data in Short Exercise to do the following for Saxton Technologies:

Saxton Technologies began the year with inventory of $480. During the year, Saxton purchased inventory costing $1,180 and sold goods for $3,200, with all transactions on account. Saxton ended the year with inventory of $610. Journalize all the necessary transactions under the periodic inventory system.

Requirements

1. Post to the Inventory and Cost of Goods Sold accounts.

2. Compute cost of goods sold by the cost-of-goods-sold model.

3. Prepare the income statement of Saxton Technologies through gross profit.