Purchase-related transactions Instructions Chart of Accounts Journal Instructions On March 1, Warwick's Co., a women's clothing store, purchased $75,000 of merchandise from a supplier on account, terms FOB destination, 2/10, n/30. On March 5, Warwick's returned $9,000 of the merchandise, receiving a credit memo, and then paid the amount due on March 9, within the discount period. Journalize Warwick's 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. Instructions Chart of Accounts Journal X Instructions X Chart of Accounts O cl CHART OF ACCOUNTS m te Warwick's Co. M General Ledger m th ASSETS REVENUE th 110 Cash 410 Sales 120 Accounts Receivable 610 Rent Revenue J 125 Notes Receivable th 130 Merchandise Inventory EXPENSES 131 Estimated Returns 510 Cost of Merchandise Inventory Sold 140 Office Supplies 521 Delivery Expense 141 Store Supplies 522 Advertising Expense 142 Prepaid Insurance 524 Depreciation 180 Land Expense-Store 192 Store Equipment Equipment 193 Accumulated 525 Depreciation Depreciation Store Expense-Office Equipment Equipment 194 Office Equipment 526 Salaries Expense 195 Accumulated 531 Rent Expense Depreciation Office 533 Insurance Expense Equipment 534 Store Supplies Expense LIABILITIES 535 Office Supplies 210 Accounts Payable Expense 216 Salaries Payable 536 Credit Card Expense 218 Sales Tax Payable 539 Miscellaneous 219 Customers Refunds Expense Payable 710 Interest Expense 220 Unearned Rent 221 Notes Payable EQUITY 310 Owner, Capital 311 Owner, Drawing 312 Income Summary astructions Chart of Accounts Journal tructions Chart of Accounts Journal Journalize Warwick's 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 PAGE 10 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 2 3 4 5 6 210 Accounts Payable 216 Salaries Payable 218 Sales Tax Payable 219 Customers Refunds Payable 539 Miscellaneous Expense 710 Interest Expense