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christinamb
Oct 26, 2012, 03:43 PM
I'm doing a trial balance for my accounting worksheet, and my debits are off. There is one messing me up. Received a $225 reduction of our account from Pool Suppliers for lawn chairs received in damaged condition. I have dr 225 accounts payable, but where to cr the 225 is off. I thought it was Depr. Exp. Pool furniture, but that still makes my numbers wrong. This transaction is almost a week later after purchasing pool furniture on account for $2100. Any help?

paraclete
Oct 26, 2012, 03:52 PM
Clearly you have misintrepreted the transaction

When you purchased the chairs you would have debited the account pool furniture. If you then returned some of the items purchased your credit would be to the same account

Similarly in the original transaction you credited accounts payable so the credit you received reduces your accounts payable balance

christinamb
Oct 26, 2012, 04:10 PM
clearly you have misintrepreted the transaction

when you purchased the chairs you would have debited the account pool furniture. If you then returned some of the items purchased your credit would be to the same account

Similiarly in the original transaction you credited accounts payable so the credit you received reduces your accounts payable balance

This is what I did. July 17 bought additional furniture from Pool Suppliers for $2100, payment due in 30 days. I dr pool furniture 2100 and cr 2100 accounts payable.
Then on July 23 Received a $225 reduction of our account from Pool Suppliers for lawn chairs received in damaged condition. There is no indiciation the items were returned. I thought to dr accounts payable, then I'm stuck. Is that wrong? Or where do I apply the $225 reduction to what accounts for dr and cr?

paraclete
Oct 26, 2012, 05:34 PM
this is what i did. July 17 bought additional furniture from Pool Suppliers for $2100, payment due in 30 days. I dr pool furniture 2100 and cr 2100 accounts payable.
then on July 23 Received a $225 reduction of our account from Pool Suppliers for lawn chairs received in damaged condition. there is no indiciation the items were returned. I thought to dr accounts payable, then i'm stuck. Is that wrong? or where do i apply the $225 reduction to what accounts for dr and cr?

Okay if the damaged goods weren't returned you got a discount on the purchase price same answer. The net cost was 1875 and the amount you will pay is 1875