Purchase-Related T Warwick\'s Co, a women\'s clothing store, purchased $14,000 o

Question

Purchase-Related T Warwick's Co, a women's clothing store, purchased $14,000 of merchandise from a supplier on account, terms FOB destination, 2/10, n/30. Warwick's returned $2,000 of the merchandise, receiving a credit memo a. Journalize Warwick's Co.'s entry to record the purchase. Feedback Chock My Work Learming Oejective 2 b· Journalize Warwick's Co.'s entry to record the merchandise return. Cheok My Work b. A neturm reduces Merchandise Inventory and Accounts Payable ih the purchasers reoords Leaming Objectve 2 e Journalize Warwick's Co. entry to record the payment within the discount period of ten days Cheok My Work e. The amount paid is the balance in Accounts Payable armount bee does not requre an entry, leave t blank. d. Journalize Warwick's Co. entry to record the payment beyond the disoount period of ten days. if an Cost off Feedbac Check My work Partaly correc Partialy 0omect

Explanation / Answer

Using Net Method Journal Entry Date Particulars Dr. Amt. Cr. Amt. a. Inventory    13,720.00    Accounts Payable    13,720.00 (record the purchase of inventory) b. Accounts Payable      1,960.00    Inventory      1,960.00 (record the purcahse return) c. Accounts Payable    11,760.00    Cash    11,760.00 (record the pament made within discount period) d. Accounts Payable    11,760.00 Inventory          240.00    Cash    12,000.00 (record the pament made after the discount period) Using Gross Method Journal Entry Date Particulars Dr. Amt. Cr. Amt. a. Inventory    14,000.00    Accounts Payable    14,000.00 (record the purchase of inventory) b. Accounts Payable      2,000.00    Inventory      2,000.00 (record the purcahse return) c. Accounts Payable    12,000.00    Cash    11,760.00    Inventory          240.00 (record the pament made within discount period) d. Accounts Payable    12,000.00    Cash    12,000.00 (record the pament made after the discount period)

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