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Prepare journal entries to record each of the following purchases transactions of a merchandising company. Show supporting calculations and assume a perpetual inventory system. Nov.

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Prepare journal entries to record each of the following purchases transactions of a merchandising company. Show supporting calculations and assume a perpetual inventory system. Nov. 5 Purchased 600 units of product at a cost of $10 per unit. Terms of the sale are 2/10, n/60; the invoice is dated November 5. Nov. 7 Returned 25 defective units from the November 5 purchase and received full credit. Nov. 15 Paid the amount due from the November 5 purchase, less the return on November 7. Prepare journal entries to record each of the following sales transactions of a merchandising company. Show supporting calculations and assume a perpetual inventory system. Apr. 1 Sold merchandise for $3,000, granting the customer terms of 2/10, EOM; invoice dated April 1. The cost of the merchandise is $1,800. Apr. 4 The customer in the April 1 sale returned merchandise and received credit for $600. The mer- chandise, which had cost $360, is returned to inventory. Apr. 11 Received payment for the amount due from the April 1 sale less the return on April 4. anta Fe Company purchased merchandise for resale from Mesa Company with an invo ad credit terms of 3/10, n/60. The merchandise had cost Mesa $ 16,000. Santa Fe paid within the discoun eriod. Assume that both buyer and seller use a perpetual inventory system. Prepare entries that the buyer should record for (a) the purchase and (b) the cash payment. Prepare entries that the seller should record for (a) the sale and (b) the cash collection. Assume that the buyer borrowed enough cash to pay the balance on the last day of the discount peric at an annual interest rate of 8% and paid it back on the last day of the credit period. Compute ho much the buyer saved by following this strategy. (Assume a 365-day year and round dollar amounts the nearest cent, including computation of interest per day.)

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