Description Merchandise Purchases Prepare journal entries to record each of the following purchases transactions of a merchandising company. Show supporting calculations and assume a perpetual inventory system. Oct. 1Purchased 125 units of a product at a cost of $4 per unit. Terms of the sale are 2/10, n/30, and FOB shipping point; the invoice is dated October 1. Oct. 3Paid $30 cash for freight charges from UPS for the October 1 purchase. Oct. 7Returned 50 defective units from the October 1 purchase and received full credit. Oct. 11Paid the amount due from the October 1 purchase, less the return on October 7. Oct.31Assume the October 11 payment was never made and, instead, payment of the amount due on the October 1 purchase, less the return on October 7, occurred on October 31.