Sinton Inc.uses a periodic inventory system.During the current year,its beginning inventory was $5,200 and net purchases amounted to $24,600.At the end of the year,after counting its inventory,the company determined that the dollar valuation of its ending inventory was $4,100.
Required:
Prepare the two journal entries that will be recorded on Stinton's books on the last day of the year.Include explanations.

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The Answer of Sinton Inc.uses a periodic inventory system.During the current year,its beginning inventory was $5,200 and net purchases amounted to $24,600.At the end of the year,after counting its inventory,the company determined that the dollar valuation of its ending inventory was $4,100.
Required:
Prepare the two journal entries that will be recorded on Stinton's books on the last day of the year.Include explanations.