Exercise 4-13 (Algo) Recording purchases, sales, and returns; no discounts LO P1, P2 Prepare journal entries for the following merchandising transactions of Powell Company assuming it uses a perpetual inventory system and the gross method. May 1 Powell purchased merchandise with a price of $1,035 and credit terms of n/30. May 12 Powell returned merchandise that had a price of $205. May 31 Powell paid the amount due from the May 1 purchase, minus the May 12 return. June 3 Powell sold merchandise for $530, with credit terms n/15. Cost of the merchandise is $380. June 5 The customer discovers some of the units are scratched. Powell gives a price reduction (allowance) and credits the customer's accounts receivable for $52 to compensate for the scratches. June 18 Powell received payment for the amount due from the June 3 sale less the June 5 allowance. Journal entry worksheet 234567 May 1 Record Powell's purchase of merchandise with a price of $1,035 and credit terms of n/30. Note: Enter debits before credits