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Journal entries

Prepare journal entries to record each of the following purchases transactions of a merchandising com-pany. Show supporting calculations and assume a perpetual inventory system.Mar. 5Purchased 500 units of product with a list price of $5 per unit. The purchaser is granted atrade discount of 20%; terms of the sale are 2?10, n?60; invoice is dated March 5.Mar. 7Returned 50 defective units from the March 5 purchase and received full credit.Mar. 15Paid the amount due from the March 5 purchase, less the return on March 7.

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