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

Debit Cash or Accounts Payable (it depends on how the purchase was recorded)
Credit Merchandise Inventory

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

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??

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

Sorry can you explain to me why it would go to a purchases journal?

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

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?

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