**Scenario Description:**Showcase Co., a furniture wholesaler, sells merchandise to Balboa Co. on account for $61,300, with terms n/30. The cost of the goods sold is $36,800. Showcase Co. issues a credit memo for $12,300 for merchandise returned prior to Balboa Co. paying the original invoice. The cost of the merchandise returned is $7,400.**Tasks:**a. **Journalize Showcase Co.'s entries for:** - (1) The sale, including the cost of the goods sold. - (2) If an amount box does not require an entry, leave it blank. | Line Item Description | Debit ($)| Credit ($)| |-----------------------|----------|-----------| | (1) | Select an account | [Input Amount] | [Input Amount] | | | Select an account | [Input Amount] | [Input Amount] | | (2) | Select an account | [Input Amount] | [Input Amount] | | | Select an account | [Input Amount] | [Input Amount] |b. **Journalize Showcase Co.'s entries for:** - (1) The credit memo, including the cost of the returned merchandise. - (2) If an amount box does not require an entry, leave it blank. | Line Item Description | Debit ($)| Credit ($)| |-----------------------|----------|-----------| | (1) | Select an account | [Input Amount] | [Input Amount] | | | Select an account | [Input Amount] | [Input Amount] | | (2) | Select an account | [Input Amount] | [Input Amount] | | | Select an account | [Input Amount] | [Input Amount] |c. **Journalize Showcase Co.'s entry for:** - The receipt of the check for the amount due from Balboa Co. - If an amount box does not require an entry, leave it blank. | Line Item Description | Debit ($)| Credit ($)| |-----------------------|----------|-----------| | Select an account | [Input Amount] | [Input Amount] | | Select an account | [Input Amount] | [Input Amount] |**Graph/Diagram Explanation:**There are no graphs or diagrams within the provided content. The content primarily consists of ### Purchase-Related TransactionsShowcase Co., a furniture wholesaler, sells merchandise to Balboa Co. on account for $254,500, with 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.#### Instructions:a. **Journalize Balboa Co.'s entry for the purchase. If an amount box does not require an entry, leave it blank.** - [Dropdown for account selection] [Amount box] - [Dropdown for account selection] [Amount box]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.** - [Dropdown for account selection] [Amount box] - [Dropdown for account selection] [Amount box]c. **Journalize Balboa Co.'s entry for the payment of the invoice. If an amount box does not require an entry, leave it blank.** - [Dropdown for account selection] [Amount box] - [Dropdown for account selection] [Amount box]### Explanation:#### Details in Steps:1. **Journalize Balboa Co.'s Purchase:** - Select the correct accounts from the dropdown. - Enter the amounts related to the purchase.2. **Journalize the Return of Merchandise:** - Use the dropdown to choose relevant accounts. - Record the returned merchandise's values correctly.3. **Journalize the Payment of the Invoice:** - Select the appropriate accounts from the dropdown. - Enter the payment amounts accurately.These steps involve understanding basic accounting principles such as debits, credits, and how they affect various accounts in a company's ledger. ### Diagram Explanation:No graphic or diagram is included in the provided text. ### Notes:Assuming basic familiarity with journal entries and accounting principles helps in correctly selecting the accounts and entering the appropriate amounts. Ensure accuracy in recording the financial impacts of purchases, returns, and payments to maintain precise financial records.

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Showcase Co., a furniture wholesaler, sells merchandise to Balboa Co. on account, $61,300, terms n/30. The cost of the goods sold is $36,800. Showcase Co. issues a credit memo for $12,300 for merchandise returned prior to Balboa Co. paying the original invoice. The cost of the merchandise returned is $7,400. 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. (1) (2) 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. (1)

Showcase Co., a furniture wholesaler, sells merchandise to Balboa Co. on account, $61,300, terms n/30. The cost of the goods sold is $36,800. Showcase Co. issues a credit memo for $12,300 for merchandise returned prior to Balboa Co. paying the original invoice. The cost of the merchandise returned is $7,400. 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. (1) (2) 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. (1)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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