M Exercise 5-7 Analyzing and recording merchandise transactions-perpetual LO3 On May 11, 2020, Wilson Purchasing purchased $27,000 of merchandise from Happy Sales; terms 1/10, n/90, FOB Happy Sales. The cost of the goods to Happy was $22,000. Wilson paid $1,700 to Express Shipping Service for the delivery charges on the merchandise on May 11. On May 12. Wilson returned $4.400 of goods to Happy Sales, which restored them to inventory. The returned goods had cost Happy $3,600. On May 20, Wilson mailed a cheque to Happy for the amount owed on that date. Happy received and recorded the cheque on May 21. Required: a. Present the journal entries that Wilson Purchasing should record for these transactions. Assume that Wilson uses a perpetual Inventory system. View transaction list Journal entry worksheet < 1 2 3 4 Record the purchase of merchandise on credit; terms 1/10, n/90. Note: Enter debits before credes Date May 11.2020 General Journal Debit Credit Journal entry worksheet 1 2 3 4 Record the purchase of merchandise on credit; terms 1/10, n/90. Note: Enter debits before credits. Date May 11, 2020 General Journal Debit Credit Record entry Clear entry View general journal > aw E b. Present the journal entries that Happy Sales should record for these transactions. Assume that Happy uses a perpetual inventory system. View transaction list Journal entry worksheet 1 2 3 4 5 Record sale of merchandise on account; 1/10, n/90. Note: Enter debits before credits. Date May 11.2020 General Journal Debit Credit Record entry Clear entry View general journal Pant Analysis Component: Assume that the buyer, Wilson Purchasing, borrowed enough cash to pay the balance on the last day of the discount period at an annual interest rate of 4% and paid it back on the last day of the credit period. Calculate how much the buyer saved by following this strategy. (Use a 365-day year. Round intermediate calculations and final answer to 2 decimal places.) Net savings