accouting homework and quiz example Problems: Purchase-Related Transactions Stylon Co., a women’s clothing store, purchased $26,000 of merchandise from a supplier on account, terms FOB destination, 2

  

accouting homework and quiz example Problems: Purchase-Related TransactionsStylon Co., a women’s clothing store, purchased $26,000 of merchandise from a supplier on account, terms FOB destination, 2/10, n/30, using the net method under a perpetual inventory system. Stylon returned merchandise with an invoice amount of $4,200, receiving a credit memo.Showcase Co., a furniture wholesaler, sells merchandise to Balboa Co. on account, $237,490, terms n/30. The cost of the goods sold is $152,560. Showcase issues a credit memo for $31,500 for merchandise returned prior to Balboa paying the original invoice. The cost of the merchandise returned is $18,670.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.

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