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 periad. Illustrate the effects on the accounts and financial statements af Milan Co, to record the following transactions. If no account or activity is affected, sclect No effoct fram the dropdown and leave the correspanding number entry bax blank. Enter account decreases and cash outflows as negative amounts. a. The purchase Balance Sheet Statement of Income Assets Liabilities Cash Flows Equity No Effect + In Accounts PayableNo 120,000X 120,000X Statement of Cash Flows Income Statement No effect No ettect No effect No effect 0 b. The merchendise return Balance Sheet Statement of Income Assets Liabilitics Cash Flows Equity No EffectInventory Accounts Payable + No Effect 0 16,000 | X 16,000X Statement of Cash Flows Income Statement No effect No effect 0