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 500 units of product at a cost of $20 per unit. Terms of the sale are 3/10, n/60; the invoice is dated November 5.

Nov. 7 Returned 45 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.

Journal entry worksheet 2 3 Purchased 500 units of product at a cost of $20 per unit. Terms of the sale are 3/10, n/60; the invoice is dated November 5 Note: Enter debits before credits. Date General Journal Debit Credit Nov 05 Record entry Clear entry View general journal