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. November 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 dated November 5 . Novenber 7 Returned 25 defective units from the Novenber 5 purchase and received full eredit. Noveaber 15 Paid the amount due from the Novenber's purchase, ninus the return on November 7. Journal entry worksheet (1) Paid the amount due from the November 5 purchase, minus the return on November 7. Note: Enter debits before credits