Refer to Exercise 6-14 Showcase Co., a furniture wholesaler, sells merchandise to Balboa Co. on account, $254,500,

Question:

Refer to Exercise 6-14

Showcase Co., a furniture wholesaler, sells merchandise to Balboa Co. on account, $254,500, terms n/30. The cost of the merchandise 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.

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