Purchase-Related Transactions

Showcase Co., a furniture wholesaler, sells merchandise to Balboa Co. on account, $18,200, terms n/30. The cost of the merchandise sold is $10,900. Showcase Co. issues a credit memo for $3,300 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.

Merchandise Inventory Accounts Payable-Showcase Co.

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

Accounts Payable-Showcase Co. Merchandise Inventory

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