Purchase Related Transactions

Paramount co., a women's clothing store, purchased $60,000 of merchandise from a supplier on account, terms FOB destination, 2/10,n/30. Paramount Co. returned $12,000 of the merchandise, receiving a credit memo, and then paid the amount due within the discount period.

A. Journalize Paramount Co.'s entry to record the purchase.

1. _________ ____________

2. __________ ____________

B. Journalize Paramount Co.'s entry to record the merchandise return.

1. _________ ____________

2. _________ ____________

C. Journalize Paramount Co's entry to record the payment.

1. ________________ ____________ ______________

2.________________ ____________ ____________

3. ______________ ______________ _____________