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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
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. 75,000 X Accounts Payable 75,000 | X b. Journalize Warwick's entry to record the merchandise return Accounts Payable 9.000 x Inventory 9,000 X c. Journalize Warwick's to record the payment within the discount period of ten days. Accounts Payable66,000X Cash 66,000 X d. Journalize Warwick's to record the payment beyond the discount period of ten days. If an amount box does not require an entry, leave it blank. Accounts Payable 66,000 | X Cash x 64,680 | X Purchase Discounts x 1,320X
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