Chapter 5 Lesson (REQUIRED) QS 5-5 Recording purchases, returns, and discounts taken GP1 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. Nov.5 Purchased 600 units of product at a cost of $10 per unit. Terms of the sale are 2/10, n/60; the invoice is dated November 5. 7 Returned 25 defective units from the November 5 purchase and received full credit. Paid the amount due from the November 5 purchase, minus the return on November 7. 15