I need help with this problem. Could someone possibly explain to me how to prepare the journal entry for this problem?
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 with a list price of $5 per unit. The purchaser is granted a
trade discount of 20%; terms of the sale are 2/10, n/60; 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.
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