Versailles Co., a womens clothing store, purchased $18,000 of merchandise from a supplier on account, terms FOB

Question:

Versailles Co., a women’s clothing store, purchased $18,000 of merchandise from a supplier on account, terms FOB destination, 2/10, n/30. Versailles Co. returned $3,000 of the merchandise, receiving a credit memorandum, and then paid the amount due within the discount period. Illustrate the effects on the accounts and of Versailles Co. to record
(a) The purchase,
(b) The merchandise return, and
(c) The payment.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...