Bascomb Company begins 2013 with $ 20,000 in inventory, during the year it purchases on account $420,000 of merchandise and during the month of April, merchandise costing $350,000 was sold on account for $425,000. The JE to record the purchases according to the perpetual inventory system. Inventory Account Payable 420,000 420,000 AIR 425,000 Sales revenue 425,000 Inventory Account Payable 425,000 425,000 A/R 420,000 Sales revenue 420,000 Purchases 420,000 Account Payable 420,000 425,000 AR Sales revenue 425,000 Purchases Account Payable 420,000 420,000 COGS Inventory 40,000 420,000