QS 4-5 (Algo) Recording purchases, returns, and discounts taken LO P1 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 1,150 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. Nov. 7 Returned 30 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. Answer is complete but not entirely correct. No Date General Journal Credit Debit 11,500 1 Nov 05 Merchandise inventory Accounts payable 11,500 2 Nov 07 300 Accounts payable Merchandise inventory 300 3 Nov 15 11,200 Accounts payable Cash Merchandise inventory 10,976 X 560 X