Showcase Co., a furniture wholesaler, sells merchandise to Balboa Co. on account, $44,900, terms n/30....
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Showcase Co., a furniture wholesaler, sells merchandise to Balboa Co. on account, $44,900, terms n/30. The cost of the goods sold is $26,900. Showcase Co. issues a credit memo for $9,000 for merchandise returned prior to Balboa Co. paying the original invoice. The cost of the merchandise returned is $5,400. a. Journalize Showcase Co.'s entries for (1) the sale, including (2) the cost of the goods sold. If an amount box does not require an entry, leave it blank. Feedback Check My Work a. Record transactions from the seller's perspective. Keep in mind that two entries are required for the transaction: (1) for the sale on account and (2) for the cost of the merchandise sold (expense) and inventory reduction on the seller's records. b. Journalize Showcase Co.'s entries for (1) the credit memo, including (2) the cost of the returned merchandise. If an amount box does not require an entry, leave it blank. Check My Work Returns Inventory
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