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Perpetual inventory system: journal entries. At the beginning of 20X3, Beehler Company implemented a computerized perpetual inventory system. The following transactions occurred:
•Purchases on account: 500 units @ $4 = $2,000
•Sales on account: 300 units @ $5 = $1,500
•Purchases on account: 600 units @ $5 = $3,000
•Sales on account: 300 units @ $5 = $1,500
a. Prepare journal entries for the above purchases and sales.
b. Calculate the balance in the firm’s Inventory account.