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Ex5-6 Purchase-related transactions OBJ. 2 Warwicks Co., a womens clothing store, purchased $75,000 of merchandise from a sup-plier on account, terms FOB destination, 2/10, n/30. Warwicks returned $9,000 of the merchandise, receiving a credit memo, and then paid the amount due within the discount period. Journalize Warwicks entries to record (a) the purchase, (b) the merchandise re-turn, and (c) the payment.

EX 5-8 Sales-related transactions, including the use of credit cards OBJ. 2 Journalize the entries for the following transactions:a. Sold merchandise for cash, $30,000. The cost of the merchandise sold was $18,000. b. Sold merchandise on account, $258,000. The cost of the merchandise sold was $154,800.c. Sold merchandise to customers who used MasterCard and VISA, $160,000. The cost of the merchandise sold was $96,000.d. Sold merchandise to customers who used American Express, $72,000. The cost of the merchandise sold was $43,200.e. Received an invoice from National Clearing House Credit Co. for $8,800, representing a service fee paid for processing MasterCard, VISA, and American Express sales.

EX 5-20 Income statement and accounts for merchandiser OBJ. 3 For the fiscal year, sales were $25,565,000 and the cost of merchandise sold was $15,400,000.a. What was the amount of gross profit? b. If total operating expenses were $4,550,000, could you determine net income?c. Is Customer Refunds Payable an asset, liability, or owners equity account and what is its normal balance?d. Is Estimated Returns Inventory an asset, liability, or owners equity account and what is its normal balance?

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