Prepare journal entries for the following merchandising transactions of Dollar Store assuming it uses a

perpetual inventory system and the gross method.

Nov. $1$ Dollar Store purchases merchandise for $$1,500$ on terms of $\frac{2}{5},\frac{n}{30},$ FOB shipping point,

invoice dated November $1.$

$5$ Dollar Store pays cash for the November $1$ purchase.

$7$ Dollar Store discovers and returns $$200$ of defective merchandise purchased on November $1,$

and paid for on November $5,$ for a cash refund.

$10$ Dollar Store pays $$90$ cash for transportation costs for the November $1$ purchase.

$13$ Dollar Store sells merchandise for $$1,600$ with terms $\frac{n}{30}.$ The cost of the merchandise is $$800.$

$16$ Merchandise is returned to the Dollar Store from the November $13$ transaction. The returned items

are priced at $$160$ and cost $$80$; the items were not damaged and were returned to inventory.