Question no. 3 Preparing journal entries perpetual system 1. On November 1, Al Ain Systems purchases merchandise for $1,500 on credit with terms of 2/5, 1/30, FOB shipping point; invoice dated November 1. 2. On November 5, Al Ain Systems pays cash for the November 1 purchase. 3. On November 7, Al Ain Systems discovers and returns $200 of defective merchandise purchased on November 1 for a cash refund. 4. On November 10, Al Ain Systems pays $90 cash for transportation costs with the November I purchase. 5. On November 13, Al Ain Systems sells merchandise for $1,600 on credit. The cost of the merchandise is $800. 6. On November 16, the customer returns merchandise from the November 13 transaction. The returned items are priced at $300 and cost $130; the items were not damaged and were returned to inventory. Required: Journalize the above merchandising transactions for Al Ain Systems assuming it uses a perpetual inventory system