ch5-2

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 500 units of product at a cost of $20 per unit. Terms of the sale are 3/10, 1/60; the invoice is dated November 5. November 7 Returned 45 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 Journal entry worksheet