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3 November, 01:13

Purchase-Related Transactions Warwick's Co., a women's clothing store, purchased $27,000 of merchandise from a supplier on account, terms FOB destination, 2/10, n/30. Warwick's returned $4,100 of the merchandise, receiving a credit memo, and then paid the amount due within the discount period. a. Journalize Warwick's Co.'s entry to record the purchase. b. Journalize Warwick's Co.'s entry to record the merchandise return. c. Journalize Warwick's Co.'s entry to record the payment.

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  1. 3 November, 02:57
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    Answer: Explanation:

    inventory 27,000

    account payable 27,000

    to record purchase on account

    account payable 4,100

    inventory 4,100

    to recordreturn of goods

    account payable 22,900 (27,000 - 4,100)

    discount received 458 (22,900 x 2%)

    cash 22,442 (22,900 - 458)

    to record payment within discount period
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