Sparrow Company uses the perpetual inventory system and began business on August 1. During the month Sparrow made inventory purchases of $8,400, terms of 3/15, n/45. Sparrow returned $300 worth of goods during the month, paid all suppliers in time to take advantage of all offered cash discounts during the month and sold inventory with a value of $5,350. These were the only inventory transactions during the month. What is the balance in the inventory account at the end of August?