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.
