QS 5-9 Recording purchases and allowances; no discounts P1 Prepare journal entries to record each of the following transactions. The company records purchases using the gross method and a perpetual inventory system. June Purchased merchandise with a price of $450 and credit terms of n45. 9 Received a $50 allowance (for scratched merchandise) toward the June 1 purchase. July 16 Paid the amount due from the June 1 purchase, minus the June 9 allowance.