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. Purchased 600 units of product at a cost of $10 per unit. Terms of the sale are 2/10, n/60; the invoice is dated November 5.
Nov. 7 Returned 25 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