Showcase Co., a furniture wholesaler, sells merchandise to Balboa Co. on account, $252,510, terms n/30. The cost of the goods sold is $141,390. Showcase issues a credit memo for $30,380 for merchandise returned prior to Balboa paying the original invoice. The cost of the merchandise returned is $18,740.

Journalize Showcase Co.s entries for (a) the sale, including the cost of the goods sold, (b) the credit memo, including the cost of the returned merchandise, and (c) the receipt of the check for the amount due from Balboa Co. Refer to the Chart of Accounts for exact wording of account titles.

CHART OF ACCOUNTSShowcase Co.General Ledger

	ASSETS
110	Cash
121	Accounts Receivable-Balboa Co.
125	Notes Receivable
130	Inventory
131	Estimated Returns Inventory
140	Office Supplies
141	Store Supplies
142	Prepaid Insurance
180	Land
192	Store Equipment
193	Accumulated Depreciation-Store Equipment
194	Office Equipment
195	Accumulated Depreciation-Office Equipment
	LIABILITIES
210	Accounts Payable
218	Sales Tax Payable
219	Customer Refunds Payable
220	Unearned Rent
221	Notes Payable

	EQUITY
310	Common Stock
311	Retained Earnings
312	Dividends
313	Income Summary
	REVENUE
410	Sales
610	Rent Revenue

	EXPENSES
501	Cost of Goods Sold
521	Delivery Expense
522	Advertising Expense
524	Depreciation Expense-Store Equipment
525	Depreciation Expense-Office Equipment
531	Rent Expense
533	Insurance Expense
534	Store Supplies Expense
535	Office Supplies Expense
536	Credit Card Expense
539	Miscellaneous Expense
710	Interest Expense

Journalize Showcase Co.s entries for (a) the sale, including the cost of the goods sold, (b) the credit memo, including the cost of the returned merchandise, and (c) the receipt of the check for the amount due from Balboa Company. For grading purposes, use December 31 as the date for all transactions. Refer to the Chart of Accounts for exact wording of account titles.

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ACCOUNTING EQUATION

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