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. Journalize Warwick’s entries to record (A) the purchase. (B) the merchandise return, and (C) the payment within the discount period of ten days, and (D) payment beyond the discount period of ten days.
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