Purchase-Related Transactions

Showcase Co., a furniture wholesaler, sells merchandise to Balboa Co. on account, $254,500, terms n/30. The cost of the goods sold is $152,700. Showcase Co. issues a credit memo for $30,000 for merchandise returned prior to Balboa Co. paying the original invoice. The cost of the merchandise returned is $17,500.

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

	Inventory	$
	Accounts Payable-Showcase Co.		$

Feedback

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

	Accounts Payable-Showcase Co.	$
	Inventory		$

Feedback

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

	Accounts Payable-Showcase Co.	$
	Cash		$