Prepare journal entries for the following transactions:

March 7: purchased inventory on account for $4,000, terms 2/10 n/30

March 9: returned $1,000 of the above purchase as it was the wrong colour

March 15: Paid for the March 7 purchase

March 20: Sold merchandise on account for $7000. Our cost was $4500. The terms are 2/10 n/30

march 30: our customer paid us within the discount period