Question: Refer to QS 5-3 and prepare journal entries to record each of the merchandising transactions assuming that the periodic inventory system is used.
QS 5-3: Prepare journal entries to record each of the following purchases transactions of a merchandising company. Show supporting calculations and assume a perpetual inventory system. Mar. 5 Purchased 500 units of product at a cost of $5 per unit. Terms of the sale are 2y10, ny60; the invoice is dated March 5. Mar. 7 Returned 50 defective units from the March 5 purchase and received full credit. Mar. 15 Paid the amount due from the March 5 purchase, less the return on March 7.