12.5 2 points eBook QS 5-5 (Algo) Recording purchases, returns, and discounts taken LO P1 Prepare journal entries to record each of the following transactions of a merchandising company. The company uses a perpetual inventory system and the gross method. November 5 Purchased 800 units of product at a cost of $8 per unit. Terms of the sale are 5/10, n/60; the invoice is dated November 5. November 7 Returned 25 defective units from the November 5 purchase and received full credit. November 15 Paid the amount due from the November 5 purchase, minus the return on November 7. View transaction list View journal entry worksheet Hint No Date General Journal 1 Nov 05 Print Merchandise inventory Accounts payable References 2 2 Nov 07 Accounts payable Merchandise inventory 3 Nov 15 Accounts payable Merchandise inventory Cash Debit Credit 6,400 6.400