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.

November $5$ Purchased $500$ units of product at a cost of $$12$ per unit. Terms of the sale are $5/10,$ n$/60$; the invoice is dated November $5.$

November $7$ Returned $40$ defective units from the November $5$ purchase and received full credit.

November $15$ Paid the amount due from the November $5$ purchase, minus the return on November $7.$