Question

Instructions Chart of Accounts Journal Instructions Warwick's Co, a wonen's clothing store, purchased S75,000 of merchandse from a supplier on account, tems EOB destnation, 2/10, 30 Warwick's retumed $9,000 of the merchandise, receivng a cedt memo Jounalze Wanwick's entries to record (a) the purchase (b) the merchandise retum and the payment wthin the dscount period of ten days, and i payment beyond the docount period of n days Refer to the Chat of Accounts for exact wording of ac grading purpooes use December 31 as the date for all transactions Previau Save and Exith Sut Asige Oheck My Wok All work saved

Answer 1

Journal Entries
Date	Account Title and explanation	Debit	Credit
A)
Dec, 31	Inventory	$                  75,000
	Account Payable		$                     75,000
B)
Dec, 31	Account Payable	$                     9,000
	Inventory		$                       9,000
C)
Dec, 31	Account Payable	$                  66,000
	Cash ($ 66,000 X 98%)		$                     64,680
	Discount on Purhcase ($ 66,000 X 2%)		$                       1,320
D)	Note: If payment of inventory purhcased is not made within 10 days then below entry will be passed
Dec, 31	Account Payable	$                  66,000
	Cash		$                     66,000