QS 4-5 (Algo) Recording purchases, returns, and discounts taken LO P1 8 ts 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 400 units of product at a cost of $10 per unit. Terms of the sale are 3/10, n/60; the invoice is dated November 5.1 November 7 Returned 30 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.