Based on the data presented in Exercise 6-14, journalize Balboa Co.’s entries for (a) the purchase

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