On March 1, Warwick’s Co., a women’s clothing store, purchased $72,900 of merchandise from a supplier on account, terms FOB destination, 2/10, n/30. On March 5, Warwick’s returned $8,200 of the merchandise, receiving a credit memo, and then paid the amount due on March 9, within the discount period. Journalize Warwick’s entries to record (a) the purchase, (b) the merchandise return, and (c) the payment. Refer to the Chart of Accounts for exact wording of account titles.
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On March 1, Warwick’s Co., a women’s clothing store, purchased $72,900 of merchandise from a supplie...
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