What does this information indicate about the company? RCISE 5-2 (LO2) er Corp. uses the perpetual inventory system. Its transactions during July 2015 are as follows: July 6 Purchased $600 of merchandise on account from Hobson Corporation for terms 1/10, net 30. 9 Returned $200 of defective merchandise. 15 Paid the amount owing to Hobson. quired: Prepare journal entries to record the above transactions for Reber Corp. XERCISE 5-3 (LO2,3,4) I orne Inc. and Sperling Renovations Ltd. both sell goods and use the perpetual inventory system. Horne Inc. had $3,000 of merchand ear, January 1, 2015. During the 2015, Horne Inc. had the following transactions