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. Nov. 5 Purchased 1,300 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. 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, minus the return on November 7. Answer is complete but not entirely correct. No 1 Date Nov 05 General Journal Merchandise inventory Accounts payable 2 Nov 07 Accounts payable Merchandise inventory Debit Credit 26,000 24,096 900 900 3 Nov 15 Accounts payable 25,100 Merchandise inventory 1,004 Cash 24,096