Exercise 5-7 Analyzing and recording merchandise transactions-perpetual LO3 On May 11, 2020. Wilson Purchasing purchased \$27,000 of merchandise from Happy Sales; terms 1/10, n/90, FOB Happy Sales. The cost of the goods to Happy was $22 , 000 . Wilson paid $1 , 700 to Express Shipping Service for the delivery charges on the merchandise on May 11. On May 12. Wilson returned $4.400 of goods to Happy Sales, which restored them to inventory. The returned goods had cost Happy $3 , 600 . On May 20. Wilson mailed a cheque to Happy for the amount owed on that date. Happy received and recorded the cheque on May 21. Required: a. Present the journal entries that Wilson Purchasing should record for these transactions. Assume that Wilson uses a perpetual inventory system. Journal entry worksheet Record the purchase of merchandise on credit; terms 1/10 , n /90 . Note: Enter debits before credits. b. Present the joumal entries that Happy Sales should record for these transactions. Assume that Happy uses a perpetual inventory system. Journal entry worksheet Anolysis Component: Assume that the buye, Wison Purchasing, borrowed enough cash to pay the balance on the last day of the discount perlod at an annual interest tate of 4% and paid it back on the last day of the crecit period. Calculate how much the buyer saved by following this strategy. (Use a 365 -doy yeor. Round intermediate colculations ond finol answer to 2 decimal places.)