Purchase-Related Transactions Showcase Co., a furniture

Last updated: 7/15/2022

Purchase-Related Transactions Showcase Co., a furniture wholesaler, sells merchandise to Balboa Co. on account, $254,500, terms n/30. The cost of the goods sold is $152,700. Showcase Co. Issues a credit memo for $30,000 for merchandise returned prior to Balboa Co. paying the original invoice. The cost of the merchandise returned is $17,500. a. Journalize Balboa Co.'s entry for the purchase. If an amount box does not require an entry, leave it blank. Inventory Accounts Payable Showcase Co. a. Record the transaction from the buyer's perspective. A purchase increases inventory and the amount that is owed on account. b. Journalize Balboa Co.'s entry for the return of the merchandise for credit. If an amount box does not require an entry, leave it blank. Accounts Payable-Showcase Co. Inventory b. A return reduces Inventory and Accounts Payable in the buyer's records. 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 Sm