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. The purchase Assets No Effect + Inventory Statement of Cash Flows No effect b. The merchandise return Assets No Effect Inventory Statement of Cash Flows No effect c. The payment = == Balance Sheet Liabilities Stockholders' Equity Accounts Payable + No Effect Income Statement No effect Balance Sheet Liabilities + Stockholders' Equity Accounts Payable No Effect Income Statement No effect Balance Sheet Assets = Liabilities + Stockholders' Equity Cash + Inventory = Accounts Payable No Effect Statement of Cash Flows Operating Income Statement No effect