QS 4-26C (Algo) Net method-Recording purchases, returns, and discounts LO P7 Prepare journal entries to record each of the merchandising transactions assuming that the company records purchases using the net method and a perpetual inventory system. Nov. 5 Purchased 450 units of product at a cost of $10 per unit. Terms of the sale are 4/10, n/60; the invoice is dated November 5. Nov. 7 Returned 35 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. X Answer is not complete. No Date General Journal Debit Credit 1 Nov 05 4,500 X Merchandise inventory Accounts payable 4,500 X 2 Nov 07 350 X Accounts payable Merchandise inventory OO OO 350 X 3 Nov 15 x Cash Discount on bonds payable Merchandise inventory