On July 1, Alvarez, Inc. purchased merchandise for $2,500, with terms of 2/10, n/30. Alvarez uses the perpetual inventory system. Required a. Prepare the journal entries for July 1, July 5, and July 8. General Journal Date July 1 5 8 + Cash A To record purchase of merchandise, terms 2/10, n/30. To record returned merchandise. + Description + To record the paid amount due within the discount period for the July 1 purchase. July 5, the firm returned $800 of the merchandise to the seller. Payment of the account occurred on July 8. Debit Credit b. Assuming that the account was paid on July 14, prepare the journal entry for payment on that date. General Journal Date July 14 Description To record the paid amount due on the July 1 purchase. Debit Credit