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.5Purchased 800 units of product at a cost of $8 per unit. Terms of the sale are 5/10, n/60; the invoice is dated November 5.Nov.7Returned 25 defective units from the November 5 purchase and received full credit.Nov.15Paid the amount due from the November 5 purchase, minus the return on November 7.