Sales-Related Transactions

Showcase Co., a furniture wholesaler, sells merchandise to Balboa Co. on account, $47,500, terms n/30. The cost of the goods sold is $28,500. Showcase issues a credit memofor $9,500 for merchandise returned prior to Balboa paying the original invoice. The cost of the merchandise returned is $5,700.

a. Journalize Showcase Co.'s entries for (1) the sale, including (2) the cost of the goods sold.

(1)
(2)

b. Journalize Showcase Co.'s entries for (1) the credit memo, including (2) the cost of the returned merchandise.

(1)
(2)

c. Journalize Showcase Co.'s entry for the receipt of the check for the amount due from Balboa Co.