Prepare journal entries to record each of the following purchases transactions of a merchandising company. Show supporting calculations and assume a perpetual inventory system. jki4

Mar. 5 Purchased 500 units of product with a list price of $5 per unit. The purchaser is granted a trade discount of 20%; terms of the sale are 2/10, n/60; invoice is dated March 5.

Mar. 7 Returned 50 defective units from the March 5 purchase and received full credit.

Mar. 15 Paid the amount due from the March 5 purchase, less the return on March 7.