Purchase Related Transactions Warwick\'s Co., a women\'s clothing store, purchas

Question

Purchase Related Transactions Warwick's Co., a women's clothing store, purchased $25,000 of merchandise from a supplier on account, terms FOB destination, 1/ /30. Warwick's returned $4,300 of the merchandise, receiving a credit memo, and then paid the amount due within the discount period 10, a. Journalize Warwick's Co.'s entry to record the purchase. Merchandise Inventory 25,000 Accounts Payable 25,000 b. Journalize Warwick's Co.'s entry to record the merchandise return. Accounts Payable 20,700 X Merchandise Inventory 27,000 X Feedback Check My Work b. A return reduces Merchandise Inventory and Accounts Payable in the purchaser's records. c. Journalize Warwick's Co.'s entry to record the payment Accounts Payable 207 X

Explanation / Answer

1) Journal entry :

Note : As per chegg policy only one question in one time

Date account & explanation debit credit Merchandise inventory 25000 Account payable 25000 Account payable 4300 Merchandise inventory 4300 Account payable 20700 Cash (20700*99%) 20493 Merchandise inventory 207

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