Prepare journal entries for the following merchandising transactions of Powell Company assuming it uses a perpetual Inventory system and the gross method May 1 Powell purchased merchandise with a price of $955 and credit terms of n/30. May 12 Powell returned merchandise that had a price of $165. May 31 Powell paid the amount due from the May 1 purchase, minus the May 12 return. June 3 Powell sold merchandise for $490, with credit terms n/15. Cost of the merchandise is $340. 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 $36 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 3 4 5 May 1 Record Powell's purchase of merchandise with a price of $955 and credit terms of 1/30 Note: Enter debits before credits General Journal Debit Credit Date May 01