Leeter D

Purchase-Related Transactions Stylon Co., a women's clothing store, purchased 548,000 of merchandise from a supplier on account, terms FOB destination, 2/10, 1/30, using the net method under a perpetual inventory system. Stylon returned merchandise with an invoice amount of $7,500, receiving a credit memo a. Journalize Stylon's entry to record the purchase. If an amount box does not require an entry, leave it blank. Inventory Accounts Payable 47,640 Check My Wor a. A purchase increases Inventory and Accounts Payable. b. Journalize Stylon's entry to record the merchandise return. If an amount box does not require an entry, leave it blank. Accounts Payable 7,350 Inventory 7,350 Feedback Check My Work b. A return reduces Inventory and Accounts Payable in the purchaser's records. Previous Next > Check My Work c. Journalize Stylon's entry to record the payment within the discount period of 10 days. If an amount box does not require an entry, leave it blank. Accounts Payable 39,690 Cash V O 39,690 Feedback Check My Work C. The amount paid is the balance in Accounts Payable. d. Journalize Stylon's entry to record the payment beyond the discount period of 10 days. If an amount box does not require an entry, leave it blank. Accounts Payable v 39,690 C Inventory Cash Feedback Check My Work d. When a buyer does not pay within the discount period, the Inventory account must be increased to reflect the amount of the discount not taken Previous Nex