Chapter 5 Homework 1 Prepare journal entries to record the following purchases transactions of a merchandising company (Show any workings) Oct 1Purchased 500 units of iPhones at a cost of 8700 per unit. Terms of sale are 3/10, 145, and FOB shipping point Oct. 3 Paid $ 1,000 cash for freight charges from UPS for the October 1 Purchase Oct. 7 Returned 50 defective units from the October 1 purchase and received a full credit Oct. 11 Paid the amount due from the October I purchase, less the return on October 7 Nov 25. Supposing the October 11 payment is not made and instead the payment for the amount due on the October I purchase, less the returns of October 7, occurred on November 25th