On July 1, Hernandez, Inc. purchased merchandise for \(\$ 2,500\), with terms of \(1 / 10, n / 30\). On July 5 , the firm returned \(\$ 1,000\) of the merchandise to the seller. Payment of the account occurred on July 8 . Hernandez uses the perpetual inventory system.

Required

a. Prepare the journal entries for July 1, July 5, and July 8.

b. Assuming that the account was paid on July 14 , prepare the journal entry for payment on that date.