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cute_panda05
May 20, 2012, 04:18 PM
Received an ajustment (credit) note from Love Ltd for inventory returned, $120

Will it be DR cash at bank
CR accounts receivable


Arghh please help

pready
May 20, 2012, 05:11 PM
Debit Cash or Accounts Payable (it depends on how the purchase was recorded)
Credit Merchandise Inventory

paraclete
May 20, 2012, 05:13 PM
Received an ajustment (credit) note from Love Ltd for inventory returned, $120

will it be DR cash at bank
CR accounts receivable


arghh please help

The bank account is not yet involved

DR Accounts Payable
CR Inventory

cute_panda05
May 20, 2012, 06:22 PM
Debit Cash or Accounts Payable (it depends on how the purchase was recorded)
Credit Merchandise Inventory

Will this entry go to the cash receipts journal??

paraclete
May 20, 2012, 07:25 PM
will this entry go to the cash receipts journal???

A cash receipts journal is used to record deposits to the bank account I have already told you the bank account is not involved If you have a purchases journal it might go in there otherwise you can make an adjusting entry in the general journal

cute_panda05
May 20, 2012, 11:04 PM
Sorry can you explain to me why it would go to a purchases journal?

paraclete
May 20, 2012, 11:25 PM
sorry can you explain to me why it would go to a purchases journal?


Received an ajustment (credit) note from Love Ltd for inventory returned, $120
As I read your question the company had received a credit note for return of something they had purchased therefore it can be managed as a negative entry in the purchase journal

cute_panda05
May 21, 2012, 01:54 AM
as I read your question the company had recieved a credit note for return of something they had purchased therefore it can be managed as a negative entry in the purchase journal

Thankssss... could you please help me with this : issued an adjustment(credit) note to hand Ltd for defective goods sold on 25 June, $125

I'm assuming this will go to the general journal?

paraclete
May 21, 2012, 08:02 PM
thankssss.... could you please help me with this : issued an adjustment(credit) note to hand Ltd for defective goods sold on 25 June, $125

i'm assuming this will go to the general journal?

Seems like a possible sales journal entry