Purchase-Related Transactions Showcase Co., a furniture wholesaler, sells merchandise to Balboa Co. on account, $32,800, terms n/30. The cost of the merchandise sold is $19,700. Showcase Co. issues a credit memo for $5,600 for merchandise returned prior to Balboa Co. paying the original invoice. The cost of the merchandise returned is $3,400. a. Journalize Balboa Co.'s entry for the purchase. Accounts Payable-Showcase Co. Cash try for the return of the merchandise for credit. Cost of Merchandise Sold Merchandise Inventory Sales Discounts c. Journalize Balboa Co.'s entry for the payment of the invoice