Prepare journal entries for the following merchandising transactions of Powell Company assuming it uses a perpetual inventory system and the gross method. Hay 1 Powell purchased merchandise with a price of $875 and credit terms of n/30. May 12 Powell returned merchandise that had a price of $125. May 31 Powell paid the amount due from the May 1 purchase, minus the May 12 return.. June 3 Powell sold merchandise for $450, with credit terms n/15. Cost of the merchandise is $300. June 5 The customer discovers some of the units are scratched. Powell gives a price reduction (allowance) and credits the customer's accounts receivable for $20 to compensate for the scratches. June 18 Powell received payment for the amount due from the June 3 sale less the June 5 allowance. View transaction list Journal entry worksheet 1 2 34 5 6 7 May 1 Record Powell's purchase of merchandise with a price of $875 and credit terms of n/30. Note: Enter debits before credits Date May 01 General Journal Debit Credit Journal entry worksheet < 2 3 4 5 6 7 May 12 Record Powell's returned of merchandise that had a price of $125. Note: Enter debits before credits. Date May 12 General Journal Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 4 5 6 7 May 31 Record Powell's payment of the amount due from the May 1 purchase, minus the May 12 return. Note: Enter debits before credits. Date May 31 General Journal Debit Credit View general journal Clear entry Record entry Journal entry worksheet < 1 2 3 4 5 6 7 June 3 Record Powell's sale of merchandise for $450, with credit terms n/15. Note: Enter debits before credits. Date Jun 03 General Journal Debit Credit View general journal Record entry Clear entry Journal entry worksheet < 1 2 3 4 5 10 6 7 June 3 Record the cost of merchandise sold, $300. Note: Enter debits before credits. Date Jun 03 General Journal Debit Credit View general journal Record entry Clear entry Journal entry worksheet < 1 2 3 4 5 6 7 June 5 The customer discovers some of the units are scratched. Powell gives a price reduction (allowance) and credits the customer's accounts receivable for $20 to compensate for the scratches. Record the allowance. Note: Enter debits before credits. Date Jun 05 General Journal Debit Credit View general journal Record entry Clear entry Journal entry worksheet < 1 2 3 4 5 6 June 18 Record the receipt of payment by Powell for the amount due from the June 3 sale less the June 5 allowance. Note: Enter debits before credits. Date Jun 18 General Journal Debit Credit View general journal Record entry Clear entry