. The ABC merchandise Company has the following transactions: May 01: The Company purchased 5 units of inventory on account at a cost of $500 each. May 04: sold 4 units of inventory on account at a price of $800 each. May 05: Purchased an additional 6 units on account at a cost of $500. May 07: Paid $2500 against purchases to supplier of inventory. May 08: Sold 5 units of inventory for cash at a sale price of $850. May 10: Collected $3200 from the customer against the credit sales on May 04. Requirement: Prepare the journal entries to record the above transactions by using the following: 1. Perpetual inventory system 2. Periodic inventory system