On oct. 5, Longhini company buys merchandise on account from Okern company. The selling price of the goods is $5000 and the cost to Okern company is $3000. On oct. 8, Longhini company returns defective goods with a selling price of $640 and a scrap value of $240. Record the transactions of Longhini Company, assuming a perpetual approach. What is the total increase in inventory as a result of the transactions listed