Return to questi QS 4-5 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 1,250 units of product at a cost of $20 per unit. Terms of the sale are 5/10, 1/60; the invoice is dated November 5. Nov. 7 Returned 40 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. No Date Answer is complete but not entirely correct. General Journal Merchandise inventory Accounts payable Credit Debit 25,000 1 Nov 05 O 25,000 2 Nov 07 800 Accounts payable Merchandise inventory 800 3 Nov 15 24,200 O Accounts payable Cash Merchandise inventory 23,716 484 X