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, and then paid the amount due within the discount period. journalize warwick's entry to record the purchase.

Exercise 7-7 martinez company reports the following financial information before adjustments. dr. cr. accounts receivable $168,900 allowance for doubtful accounts $3,200 sales revenue (all on credit) 849,300 sales returns and allowances 50,440 prepare the journal entry to record bad debt expense assuming martinez company estimates bad debts at (a) 4% of accounts receivable and (b) 4% of accounts receivable but allowance for doubtful accounts had a $1,550 debit balance. (if no entry is required, select "no entry" for the account titles and enter 0 for the amounts. credit account titles are automatically indented when the amount is entered. do not indent manually.)