Prepare journal entries to record each of the following transactions of a merchandising company. The company uses a perpetual inventory system and the gross method. Nov. 5 Purchased 1,400 units of product at a cost of $40 per unit. Terms of the sale are 5/10, 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, minus the return on November 7. View transaction list Journal entry worksheet 2 3 > Purchased 1,400 units of product at a cost of $40 per unit. Terms of the sale are 5/10, n/60; the invoice is dated November 5. Note: Enter debits before credits. Date General Journal Debit Credit Nov 05 56,000 Merchandise inventory Accounts payable 56,000 Journal entry worksheet Returned 25 defective units from the November 5 purchase and received full credit. Note: Enter debits before credits. Date General Journal Debit Credit Nov 07 1,000 Accounts payable Merchandise inventory 1,000 Journal entry worksheet