ales-Related Transactions Showcase Co., a furniture wholesaler, sells merchandise to Balboa Co. on account, $61,800, terms n/30. The cost of the merchandise sold is $37,100. Showcase Co. issues a credit memo for $12,400 as a price adjustment prior to Balboa Co. paying the original invoice. a. Journalize Showcase Co.’s entries for (1) the sale, including (2) the cost of the merchandise sold. If an amount box does not require an entry, leave it blank. (1) fill in the blank d4318b04efcef95_2 fill in the blank d4318b04efcef95_3 fill in the blank d4318b04efcef95_5 fill in the blank d4318b04efcef95_6 (2) fill in the blank d4318b04efcef95_8 fill in the blank d4318b04efcef95_9 fill in the blank d4318b04efcef95_11 fill in the blank d4318b04efcef95_12 b. Journalize Showcase Co.’s entry for the credit memo. If an amount box does not require an entry, leave it blank. fill in the blank d2c31b02b03d071_2 fill in the blank d2c31b02b03d071_3 fill in the blank d2c31b02b03d071_5 fill in the blank d2c31b02b03d071_6 c. Journalize Showcase Co.’s entry for the receipt of the check for the amount due from Balboa Co. If an amount box does not require an entry, leave it blank. fill in the blank 1fc91e05100c021_2 fill in the blank 1fc91e05100c021_3 fill in the blank 1fc91e05100c021_5 fill in the blank 1fc91e05100c021_6
Sales-Related Transactions
Showcase Co., a furniture wholesaler, sells merchandise to Balboa Co. on account, $61,800, terms n/30. The cost of the merchandise sold is $37,100. Showcase Co. issues a credit memo for $12,400 as a price adjustment prior to Balboa Co. paying the original invoice.
a. Journalize Showcase Co.’s entries for (1) the sale, including (2) the cost of the merchandise sold. If an amount box does not require an entry, leave it blank.
| (1) | fill in the blank d4318b04efcef95_2 | fill in the blank d4318b04efcef95_3 | |
| fill in the blank d4318b04efcef95_5 | fill in the blank d4318b04efcef95_6 | ||
| (2) | fill in the blank d4318b04efcef95_8 | fill in the blank d4318b04efcef95_9 | |
| fill in the blank d4318b04efcef95_11 | fill in the blank d4318b04efcef95_12 |
b. Journalize Showcase Co.’s entry for the credit memo. If an amount box does not require an entry, leave it blank.
| fill in the blank d2c31b02b03d071_2 | fill in the blank d2c31b02b03d071_3 | ||
| fill in the blank d2c31b02b03d071_5 | fill in the blank d2c31b02b03d071_6 |
c. Journalize Showcase Co.’s entry for the receipt of the check for the amount due from Balboa Co. If an amount box does not require an entry, leave it blank.
| fill in the blank 1fc91e05100c021_2 | fill in the blank 1fc91e05100c021_3 | ||
| fill in the blank 1fc91e05100c021_5 | fill in the blank 1fc91e05100c021_6 |
When a company makes purchases from its supplier, it can generally choose between paying the supplier immediately at the time of the purchase (i.e. cash purchase) or promise to pay at a future date (i.e. credit purchase).
Credit memo is a commercial document that is issued to a buyer by a seller including the cost of the returned merchandise.
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