On March 1, Warwicks Co., a womens clothing store, purchased $75,000 of merchandise from a supplier on account, terms FOB destination, 2/10, n/30. On March 5, Warwicks returned $9,000 of the merchandise, receiving a credit memo, and then paid the amount due on March 9, within the discount period.

Journalize Warwicks entries to record (a) the purchase, (b) the merchandise return, and (c) the payment. Refer to the Chart of Accounts for exact wording of account titles.

CHART OF ACCOUNTS

Warwicks Co.

General Ledger

	ASSETS
110	Cash
120	Accounts Receivable
125	Notes Receivable
130	Merchandise Inventory
131	Estimated Returns Inventory
140	Office Supplies
141	Store Supplies
142	Prepaid Insurance
180	Land
192	Store Equipment
193	Accumulated Depreciation-Store Equipment
194	Office Equipment
195	Accumulated Depreciation-Office Equipment

	LIABILITIES
210	Accounts Payable
216	Salaries Payable
218	Sales Tax Payable
219	Customers Refunds Payable
220	Unearned Rent
221	Notes Payable

EQUITY

310

Owner, Capital

311

Owner, Drawing

312

Income Summary

PAGE 10

JOURNAL

ACCOUNTING EQUATION

Score: 54/76

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2
3
4
5
6

	REVENUE
410	Sales
610	Rent Revenue

	EXPENSES
510	Cost of Merchandise Sold
521	Delivery Expense
522	Advertising Expense
524	Depreciation Expense-Store Equipment
525	Depreciation Expense-Office Equipment
526	Salaries Expense
531	Rent Expense
533	Insurance Expense
534	Store Supplies Expense
535	Office Supplies Expense
536	Credit Card Expense
539	Miscellaneous Expense
710	Interest Expense