Purchase-Related Transactions Warwick's Co., a women's clothing store, purchased $25,000 of merchandise from a supplier on account, terms FOB destination, 1/10, n/30. Warwick's returned $3,500 of the merchandise, receiving a credit memo. a. Journalize Warwick's Co.'s entry to record the purchase. Inventory Accounts Payable Feedback Check My Work a. A purchase increases Merchandise Inventory and Accounts Payable. Learning Objective 2. b. Journalize Warwick's Co.'s entry to record the merchandise return. Accounts Payable Inventory Feedback Check My Work b. A retum reduces Merchandise Inventory and Accounts Payable in the purchaser's records. Learning Objective 2. b. Journalize Warwick's Co.'s entry to record the merchandise return. Accounts Payable Inventory Feedback Check My Work b. A retum reduces Merchandise Inventory and Accounts Payable in the purchaser's records. Learning Objective 2. C. Journalize Warwick's Co. entry to record the payment within the discount period of ten days. Accounts Payable Cash Feedback Check My Work c. The amount paid is the balance in Accounts Payable. Learning Objective 2. d. Journalize Warwick's Co. entry to record the payment beyond the discount period of ten days. If an amount box does not require an entry, leave it blank