< Warwick's Co., a women's clothing store, purchased $20,000 of merchandise from a supplier on account, terms FOB destination, 2/10, n/30. Warwick's returned $3,000 of the merchandise, receiving a credit memo. a. Journalize Warwick's Co.'s entry to record the purchase. Inventory Accounts Payable 19,600 19,600 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 2,940 2,940 V Check My Work b. A return reduces Merchandise Inventory and Accounts Payable in the purchaser's records.