Purchase-Related Transactions

Warwicks Co., a women's clothing store, purchased $26,000 of merchandise from a supplier on account, terms FOB destination, 2/10, n/30. Warwicks returned $4,400 of the merchandise, receiving a credit memo, and then paid the amount due within the discount period.

a. Journalize Warwicks Co.'s entry to record the purchase.

	Merchandise Inventory
	Accounts Payable

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b. Journalize Warwicks Co.'s entry to record the merchandise return.

	Accounts Payable
	Merchandise Inventory

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c. Journalize Warwicks Co.'s entry to record the payment.

	Accounts Payable
	Cash