Based on the data presented in Exercise 6-14, journalize Balboa Co.’s entries for (a) the purchase, (b) the return of the merchandise for credit, and (c) the payment of the invoice.
Answer:
a. Merchandise Inventory254,500
Accounts Payable—Showcase Co.254,500
b. Accounts Payable—Showcase Co. 30,000
Merchandise Inventory30,000
c. Accounts Payable—Showcase Co. 224,500
Cash224,500