Preparing journal entries for inventory purchases and sales Journalize the following merchandising transactions for Chilton Systems.

1. On November 1, Chilton Systems purchases merchandise for \($1,500\) on credit with terms of 275;

n/30, FOB shipping point; invoice dated November 1.

2. On November 5, Chilton Systems pays cash for the November 1 purchase.

3. On November 7, Chilton Systems discovers and returns \($200\) of defective merchandise purchased on November 1 for a cash refund.

4. On November 10, Chilton Systems pays \($90\) cash for transportation costs with the November 1 purchase.

5. On November 13, Chilton 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 sell for \($300\) and cost \($150.\)