Purchase-Related Transactions

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. Warwick's returned $9,000 of the merchandise, receiving a credit memo, and then paid the amount due within the discount period.

a. Journalize Warwick's entry to record the purchase.

	Merchandise Inventory
	Accounts Payable

b. Journalize Warwick's entry to record the merchandise return.

	Accounts Payable
	Merchandise Inventory

c. Journalize Warwick's entry to record the payment.

	Accounts Payable
	Cash