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 Nov. 7 Returned 25 defective units from the November 5 purchase and received full credit. dated November 5 Nov. 15 Paid the amount due from the November 5 purchase, less the return on November 7. View transaction list View journal entry worksheet Date General Journal Debit Credit Nov 05 Purchases 56,000 Accounts payable 56,000 2 Nov 07Merchandise inventory Nov 15 Accounts payable Merchandise inventory Cash 55,875