Holiday Stores Inc. purchased 600 Chocolate Bunnies for Easter on March 1st for a total cost of $1,200. The store sold 350 Bunnies prior to Easter for $5 each. After Easter the remaining bunnies could only be sold for $1.50 each due to a severe drop in demand.

a) Prepare a journal entry to reflect that the current Sales Price had dropped to $1.50.

b) What is the balance in the Inventory ledger account after the journal entry?