282 Chapter 5 Accounting for Merchandising Businesses 2 EX 5-7 Purchase-related transactions DEJ Co., a women's clothing store, purchased $25,000 of merchandise from a supplier on account, terms FOB destination, 2/10,n/30, DEJ Co. returned $3,500 of the merchan dise, receiving a credit memo, and then paid the amount due within the discount period Journalize DEJ Co.'s entries to record (a) the purchase, (b) the merchandise return, and (c) the payment EX 5-8 Purchase-related transactions Journalize entries for the following related transactions of Westcoast Apparel Company a. Purchased $25,000 of merchandise from President Co. on account, terms 2/10, 1/30, b. Paid the amount owed on the invoice within the discount period, c. Discovered that $5,000 of the merchandise was defective and returned items. receiving credit. d. Purchased $4,000 of merchandise from President Co on account terms n/30 c. Received a cheque for the balance owed from the return in (c), after deducting for the purchase in (a)