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

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Originally Posted by cute_panda05

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

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The bank account is not yet involved

DR Accounts Payable
CR Inventory

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Originally Posted by pready

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

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Will this entry go to the cash receipts journal??

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Originally Posted by cute_panda05

will this entry go to the cash receipts journal???

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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?

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Originally Posted by cute_panda05

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

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Quote:

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Received an ajustment (credit) note from Love Ltd for inventory returned, $120

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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

Quote:

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Originally Posted by paraclete

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

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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?

Quote:

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Originally Posted by cute_panda05

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?

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Seems like a possible sales journal entry