Purchase-Related Transactions

Showcase Co., a furniture wholesaler, sells merchandise to Balboa Co. on account, $30,100, terms n/30. The cost of the merchandise sold is $18,100. Showcase Co. issues a credit memo for $5,400 as a price adjustment prior to Balboa Co. paying the original invoice.

Question Content Area

a. Journalize Balboa Co.s entry for the purchase. If an amount box does not require an entry, leave it blank.

blank	Accounts Payable-Showcase Co.CashCost of Merchandise SoldMerchandise InventorySales Discounts	- Select -	- Select -
	Accounts Payable-Showcase Co.Accounts ReceivableCost of Merchandise SoldMerchandise InventorySales Discounts	- Select -	- Select -

Question Content Area

b. Journalize Balboa Co.s entry for the credit memo. If an amount box does not require an entry, leave it blank.

blank	Accounts Payable-Showcase Co.Accounts ReceivableCashCost of Merchandise SoldMerchandise Inventory	- Select -	- Select -
	Accounts Payable-Showcase Co.CashCost of Merchandise SoldMerchandise InventorySales Discounts	- Select -	- Select -

Question Content Area

c. Journalize Balboa Co.s entry for the payment of the invoice. If an amount box does not require an entry, leave it blank.

blank	Accounts Payable-Showcase Co.Accounts ReceivableCashMerchandise InventorySales Discounts	- Select -	- Select -
	Accounts Payable-Showcase Co.Accounts ReceivableCashCost of Merchandise SoldSales Discounts	- Select -	- Select -