The following transactions for Liberty Tire, Inc., occurred during November (Click the icon to view the transactions.) Requirements 1. Journalize the transactions on the books of Liberty Tire, Inc. assuming the "net" method is used. 2. What was Liberty Tire, Inc.'s gross profit for the month of November? Nov 18 Paid Peter's Tire the amount due from the November 4 purchase in full. Journal Entry Date Accounts Dehit Nov Credit Nov 20. E Beavens returned $800 (cost, $400) of merchandise from the November 9 sale Start by recording the receivable adjustment portion of the merchandise return. (Do not yet record the inventory adjustment related to the retum. We will do this in the next journal entry) Journal Entry Accounts Debit Credit Date Nov 20 Now journalize the inventory adjustment portion of the merchandise return from November 20. Journal Entry Accounts Date Debit Credit Nov 20 A More Info - X Nov 4 Purchased $5,400 of merchandise on account from Peter's Tire. Terms, 3/15, n/45, FOB shipping point. Peter's Tire prepaid the $200 shipping cost and added the amount to the invoice. 7 Purchased $300 of supplies on account from Bargain Depot. Terms, 4/10, n/30, FOB destination. 9 Sold $1,700 (cost, $425) of merchandise on account to E. Beavens. Terms, 2/15, n/45, FOB destination. 11 Paid $100 freight charges to deliver goods to E. Beavens. 13 Returned $500 of the merchandise purchased on November 4 and received a credit. 15 Sold $850 (cost, $450) of merchandise to cash customers. 16 Paid for the supplies purchased on November 7. 18 Paid Peter's Tire the amount due from the November 4 purchase in full. 20 E. Beavens returned $800 (cost, $400) of merchandise from the November 9 sale. 22 Purchased $2,100 of inventory. Paid cash. 23 Received payment in full from E. Beavens for the November 9 sale. 30 The refund liability for the month of November was estimated to be $250. The cost of goods estimated to be returned was $100