Recording Purchases--Perpetual System On July 1, Alvarez, Inc. purchased merchandise for $2,500, with terms of 2/10, n/30. on July 5, the firm returned$800 of the merchandise to the seller. Payment of the account occurred on July 8. Alvarez uses the perpetual inventory system. Required a. Prepare the journal entries for July 1, July 5, andJuly 8 General Journal Debit Credit Date Description July 1 To record purchase of merchandise, terms 2/10, nV30. To record returned merchandise. Cash To record the paid amount due within the discount period for the July 1 purchase