Bingerton Industries uses a perpetual inventory system. The company began the year with inventory of $93,000. Purchases of inventory on account during the year totaled $318,000. Inventory costing $343,000 was sold on account for $536,000. Record transactions for the purchase and sale of inventory.

The journal entries are shown below:

1. Merchandise Inventory A/c $318,000

To Accounts payable A/c $318,000

(Being the inventory is purchased on credit)

2. Accounts receivable A/c Dr $536,000

To Sales revenue A/c $536,000

(Being inventory is sold on credit)

3. Cost of goods sold A/c Dr $343,000

To Merchandise inventory A/c $343,000

(Being inventory is sold at cost)