Valley Company's adjusted trial balance on August 31, 2018, its fiscal year-end, follows, Credit Debit $ 44,000 176,000 $ 50,820 10,000 133,537 8,000 300,960 Merchandise inventory Other (noninventory) assets Total liabilities Common stock Retained earnings Dividends Sales Sales discounts Sales returns and allowances Cost of goods sold Sales salaries .expense Rent expense-Selling space Store supplies expense Advertising expense Office salaries expense Rent expense-office space office supplies expense Totals 4,605 19,863 115,842 41,232 14,145 3,612 25,582 37,627 3,612 1,204 $495,317 $495,317 On August 31, 2017, merchandise inventory was $35,508. Supplementary records of merchandising activities for the year ended August 31, 2018, reveal the following itemized costs. 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, n/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, less the return on November 7