Based on the data presented in Exercise 6-14, journalize Balboa Co.’s entries for (a) the purchase, (b) the credit memo, and (c) the payment of the invoice.

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 as a price adjustment prior to Balboa Co. paying the original invoice. Journalize Showcase Co.’s entries for 

(a) The sale, including the cost of the merchandise sold; 

(b) The credit memo; 

(c) The receipt of the check for the amount due from Balboa Co.