Purchase-Related Transactions

Showcase Co., a furniture wholesaler, sells merchandise to Balboa Co. on account, $27,200, terms n/30. The cost of the goods sold is $16,300. Showcase issues a credit memofor $4,600 for merchandise returned prior to Balboa paying the original invoice. The cost of the merchandise returned is $2,800.

a. Journalize Balboa Co.'s entry for the purchase.

b. Journalize Balboa Co.'s entry for the return of the merchandise for credit.

c. Journalize Balboa Co.'s entry for the payment of the invoice.