LO4 P2-4A Journal Entries Paulson Manufacturing Company uses the perpetual inventory system to account for its manufacturing inventories. The following are Paulson's transactions during July 2016: July 5 Received material costing $2,000 from a supplier. The material was purchased on account. 9 Requisitioned $6,000 of material for use in the factory, consisting of $5,000 of direct material and $1,000 of indirect material. 11 Recorded the factory payroll: $13,500 of direct labor and $1,500 of indirect labor. 17 Incurred various overhead costs totaling $14,000. (Credit Accounts Payable.) 20 Applied $20,000 of manufacturing overhead to the products being manufactured. 23 Completed product costing $16,000 and moved it to the warehouse. 26 Sold goods with a product cost of $3,000 on account for $5,000. Required a. Set up T-accounts for the following four accounts and post the July 1, 2016 balances: Materials Inventory, $7,000; Work in Process Inventory, 25,000; Finished Goods Inventory, $10,000; and Cost of Goods Sold, $30,000. b. Record the transactions listed above in general journal form, post relevant portions to the four T-accounts, and balance the four accounts