PurchaseRelated Transactions Warwicks Co a womens clothing s

Purchase-Related Transactions Warwick\'s Co., a women\'s clothing store, purchased $22,000 of merchandise from a supplier on account, terms FOB destination, 1/10, n/30. Warwick\'s returned $3,300 of the merchandise, receiving a credit memo. a. Journalize Warwick\'s Co.\'s entry to record the purchase. InventoryY 21,780 Accounts Payable 21,780V Feedback Check My Work b. Journalize Warwick\'s Co.\'s entry to record the merchandise return. Accounts Payable3,267 Inventory V 3,267V Foodback PCheak My Work c. Journalize Warwick\'s Co. entry to record the payment within the discount period of ten days. Accounts Payable 18,513 Cash 18,513 Feedback Check My Work d. Journalize Warwick\'s Co. entry to record the payment beyond the discount period of ten days. If an amount box does not require an entry, leave it blank. Accounts Payable -| 22,000| x Inventory 3,3001 x Cash- 8,700

Solution

Answer:

Accounts Payable a/c             Dr. 18700

           To Cash                                     18700

(22000 - 3300 )