box blank. Enter account decreases and cash outflows as negative amounts. a. The purchase b. The merchandise return

Purchase-Related Transactions Milan Co., a women's clothing store, purchased $120,000 of merchandise from a supplier on account, terms FOB destination, 2/10, n/30. Milan Co. returned $16,000 of the merchandise, receiving a credit memorandum, and then paid the amount due within the discount period. Illustrate the effects on the accounts and financial statements of Milan Co. to record the following transactions. If no account or activity is affected, select "No effect" from the dropdown and leave the corresponding number entry box blank. Enter account decreases and cash outflows as negative amounts. a. c. The purchase Balance Sheet Assets Statement of Cash Flows b. The merchandise return Liabilities + Stockholders' Equity Income Statement Assets Statement of Cash Flows The payment Assets Statement of Cash Flows Balance Sheet Balance Sheet Liabilities + Stockholders' Equity Income Statement Liabilities + Stockholders' Equity Income Statement