Stylon Co., a women's clothing store, purchased $27,000 of merchandise from a supplier on account, terms FOB destination, 2/10, n/30, using the net method under a perpetual inventory system. Stylon returned merchandise with an invoice amount of $4,600, receiving a credit memo. Required:
Journalize Stylon’s entry to record the purchase. If an amount box does not require an entry, leave it blank.

Date   Accounts titles and Explanation   Debit       Credit

           Inventory ($27,000*98%)             $26,460

                  Accounts payable                                   $26,460

         (Being journal entry to record the purchase)

Date   Accounts titles and Explanation   Debit     Credit

           Accounts payable ($4600*98%)   $4,508

                     Inventory                                              $4,508

            (Being journal entry to record the merchandise return)

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