Following are the merchandising transactions of Dollar Store. November 1 Dollar Store purchases merchandise for $2,700 on terms of 2/5, n/30, FOB shipping point, invoice dated November 1. November 5 Dollar Store pays cash for the November 1 purchase. November 7 Dollar Store discovers and returns $200 of defective merchandise purchased on November 1, and paid for on November 5, for a cash refund. November 10 Dollar Store pays $135 cash for transportation costs for the November 1 purchase. November 13 Dollar Store sells merchandise for $2,916 with terms n/38. The cost of the merchandise is $1,458. November 16 Merchandise is returned to the Dollar Store from the November 13 transaction. The returned items are priced at $270 and cost $135; the items were not damaged and were returned to inventory. Journalize the above merchandising transactions for the Dollar Store assuming it uses a perpetual Inventory system and the gross method. Answer is complete but not entirely correct. No 1 Date Nov 01 General Journal Debit Credit Merchandise inventory 2,700 Accounts payable 2,700 2 Nov 05 Accounts payable 2,700 Merchandise inventory 54 Cash 2,648 3 Nov 07 Cash 200 x Merchandise inventory 200x 4 Nov 10 Merchandise inventory 135- Cash 135- 5 Nov 13 Accounts receivable Sales 2,916 2,916 B Nov 13 Cost of goods sold Merchandise inventory 1,458 1,458 7 Nov 16 Sales returns and allowances 270 Accounts receivable 270 8 Nov 16 Merchandise inventory Cost of goods sold 135 135