View Full Version : General journal entries
cute_panda05
May 21, 2012, 06:06 AM
Issued an adjustment(credit) note to hand Ltd for defective goods sold on 25 June, $125
Dr sales
CR Accounts receivable
pready
May 21, 2012, 06:39 AM
Your Debit will be to Sales Returns and Allowances
You will also have one more journal entry to record on the sales return. You will need the cost of inventory being returned.
Debit Inventory
Credit Cost of Goods Sold
cute_panda05
May 21, 2012, 04:49 PM
Your Debit will be to Sales Returns and Allowances
You will also have one more journal entry to record on the sales return. You will need the cost of inventory being returned.
Debit Inventory
Credit Cost of Goods Sold
Thanks! Could you help me with this transation: received an ajustment (credit) note from Love Ltd for inventory returned, $120
IS IT DR Sales returns and allowance
CR Accounts receivable
pready
May 22, 2012, 03:16 PM
Your question has been answered in my previous post.
You are correct.