Purchase-Related Transactions Warwick's Co., a women's dothing store, purchased $18,000 of merchandise from a supplier on account, terms o destination, 170,w20, Warwick's returned $2,900 of the merchandise, receiving a credit memo, and then paid the amount due within the discount period. a. Journalize Warwick's Co.'s entry to record the purchase. Merchandise Inventory 18.000 X Accounts Payable Feedback Check My Work 5 a. A purchase increases Merchandise Inventory and Accounts Payable. b. Journalize Warwick's Co.'s entry to record the merchandise return. Accounts Payable 3.038 x Merchandise Inventory 18.000 x Feedback Check My Work Inventory and Accounts Payable in the purchaser's records Journalize Warwick's Co.'s entry to record the merchandise return. Accounts Payable 3,038 X Merchandise Inventory 18,000 Feedback Check My Work b. A return reduces Merchandise Inventory and Accounts Payable in the Journalize Warwick's Co.'s entry to record the payment. Accounts Payable 14,798 X Cash 14,602 X Feedback Check My Work C. The amount paid is the balance in Accounts Payable less the discount, v purchaser's records