PURCHASE TRANSACTIONS IN A PERPETUAL SYSTEM FOR A MERCHANDISER Max's Mirrors and More sells wall and floor mirrors to customers along with other home decor items. The following transactions occurred during the month of October. Max had $4,500 of inventory at the beginning of October. Use the following information to record the purchase transactions assuming a perpetual system. Round entries to the nearest whole dollar. A. On October 3, Max purchased more mirrors on account from a wholesale supplier for $8,000 and terms 1/10, n/30. B. On October 7, the mirrors arrived and several had cracked during shipping. Max received a credit from the wholesale supplier in the amount of $350 for the returned merchandise. C. The next day, Max realized that some of the mirrors had dents in the sides of them. Because of the poor quality, Max negotiated a purchase allowance with the supplier in the amount of $200. D. On October 10, Max paid the wholesale supplier from the purchase on October 3 in full. E. Max purchased home dcor items from a different supplier on October 12 for $5,000 and terms 1/10, n/30, FOB shipping point F. On October 31, Max paid the supplier for the home dcor items in full. Max also paid for the additional charges related to freight in the amount of $50. ASSETS LIABILITIES + EQUITY