On May 5, Baker purchases 1,500 units of merchandise from Allied Parts for \($14\) per unit. Baker is a retailer and purchases the units for resale. Three separate transactions a through c also occur.

a. On May 7, Baker returns 200 units because they did not fit the customer’s needs.

b. On May 8, Baker discovers that 300 units are damaged but are still of some use and, therefore, keeps the units. Allied Parts sends Baker a credit memorandum for \($600\) to compensate for the damage.

c. On May 15, Baker discovers that 100 units are the wrong color. Baker keeps 60 of these units because Allied sends a \($120\) credit memorandum to compensate. However, Baker returns the remaining 40 units to Allied.

Prepare the appropriate journal entries for Baker Co. to record the May 5 purchase and each of the three separate transactions a through c.