Exercise 5.2 Suppose a merchandising company engaged in the following transactions during May 2020: 3 May 9 May 9 May 15 May 16 May 18 May 22 May Purchased inventory on credit terms of 1/10 net eom, $2,010. Returned 30% of the inventory purchased on May 3. It was defective. Sold goods for cash, $720. Purchased merchandise of $5300 less a $300 quantity discount. Credit terms were 3/15 net 30. (FOB Destination) A $340 freight bills incurred on goods purchased. Sold inventory on credit terms of 2/10 n/30, $3,000. Received damage merchandise from the customer whom the May 18 was made, $900. Borrowed money from the Bank to take the advantage of the discount offered on the May 15 purchase. A Note payable was signed to the bank for the net amount. Paid supplier for goods purchased on may 15, less all discount. Received cash in full settlement of the account from the customer who purchased on May 18. Paid the amount owed on account from the purchase of May 3. Purchased inventory for cash, $700 less a quantity discount of $25. 24 May 24 May 28 May 29 May 30 May Required: a) Journalize the above merchandising transactions. b) Was the decision of borrowing from bank to take the discount from the supplier when the bank has a charge of $220 for it