Purchase-Related Transactions 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

		Balance Sheet
		Assets			=	Liabilities	+	Stockholders' Equity
			+		=		+
		fill in the blank 5		fill in the blank 6		fill in the blank 7		fill in the blank 8
	Statement of Cash Flows					Income Statement
		fill in the blank 10						fill in the blank 12

b. The merchandise return

		Balance Sheet
		Assets			=	Liabilities	+	Stockholders' Equity
			+		=		+
		fill in the blank 17		fill in the blank 18		fill in the blank 19		fill in the blank 20
	Statement of Cash Flows					Income Statement
	Financing InvestingOperating No effect	fill in the blank 22						fill in the blank 24

c. The payment

		Balance Sheet
		Assets			=	Liabilities	+	Stockholders' Equity
			+		=		+
		fill in the blank 29		fill in the blank 30		fill in the blank 31		fill in the blank 32
	Statement of Cash Flows					Income Statement
		fill in the blank 34