Refer to QS 4-5 and prepare journal entries to record each of the merchandising transactions assuming that the company records purchases using the net method and a perpetual inventory system.

Data from QS 4-5

Prepare journal entries to record each of the following transactions of a merchandising company. The company uses a perpetual inventory system and the gross method.

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Nov. 5 Purchased 600 units of product at a cost of $10 per unit. Terms of the sale are 2/10, n60; the invoice is dated November 5. 7 15 Returned 25 defective units from the November 5 purchase and received full credit. Paid the amount due from the November 5 purchase, minus the return on November 7.