Question

An original credit note will be used to record returns/rebates in the creditors allowances journal

An original credit note will be used to record returns/rebates in the creditors allowances journal

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

True. The credit note is used to record the returns and rebates of an business enterprise. A credit note is issued by the seller to purchaser for the goods which are returned by the purchaser, reason can be damaged good or out dated, etc. The credit note can also be issued by the purchaser if the goods received are more than ordered. This note is also prepared when their is less payment to any party. The credit note is the source of document under credit allowances journal.

Additional Information: Debit note is also issued under the credit allowance journal.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Prepare journal entries to record the following production activities. Purchased $30,000 of raw materials on credit....
Prepare journal entries to record the following production activities. Purchased $30,000 of raw materials on credit. Used $17,000 of direct materials in the Roasting department. Used $21,500 of indirect materials in production. Journal entry worksheet Record materials purchased on credit. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Journal entry worksheet Record direct materials used in production. Note: Enter debits before credits. Transaction General Journal Debit Credit 2 Journal entry worksheet Record indirect materials used in production....
What are the steps to record an end of period adjustment for credit sales with returns...
What are the steps to record an end of period adjustment for credit sales with returns and allowances?
Account Name Debit Credit Sales $200,000 Sales Returns & Allowances $10,000 Purchases 88,000 Purchase Returns and...
Account Name Debit Credit Sales $200,000 Sales Returns & Allowances $10,000 Purchases 88,000 Purchase Returns and Allowances 18,000 Freight In 12,000 Selling Expenses 80,000 The year-end physical inventory counts were: Beginning $15,000, Ending $10,000. Net Income is: a) $23,000 b) $47,000 c) $103,000 d) $33,000 e) $28,000
the cash disbursements journal is used to record
the cash disbursements journal is used to record
Record the following transactions for Redeker Co. in the general journal. (Record journal entries in the...
Record the following transactions for Redeker Co. in the general journal. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.) 2017 May 1 Received a $24,000, 12 months, 10% note in exchange for Mark Chamber’s outstanding accounts receivable. Dec. 31 Accrued interest on the Chamber note. Dec. 31 Closed the interest revenue account. 2018 May 1 Received principal plus interest on the Chamber note. (No...
Prepare journal entries to record the following production activities. Transferred completed goods from the Assembly department...
Prepare journal entries to record the following production activities. Transferred completed goods from the Assembly department to finished goods inventory. The goods cost $132,000. Sold $442,000 of goods on credit. Their cost is $153,000. Record the transfer of goods from the assembly department to finished goods. Note: Enter debits before credits. Transaction General Journal Debit Credit 1. Record the sale of goods on credit. Note: Enter debits before credits. Transaction General Journal Debit Credit 2-a. Journal entry worksheet Record the...
Exercise 9-11 Record the following transactions for Redeker Co. in the general journal. (Record journal entries...
Exercise 9-11 Record the following transactions for Redeker Co. in the general journal. (Record journal entries in the order presented in the problem. Credit account titles are automatically indented when amount is entered. Do not indent manually.) 2017 May 1 Received a $24,000, 12 months, 10% note in exchange for Mark Chamber’s outstanding accounts receivable. Dec. 31 Accrued interest on the Chamber note. Dec. 31 Closed the interest revenue account. 2018 May 1 Received principal plus interest on the Chamber...
Santa Fe Retailing purchased merchandise “as is” (with no returns) from Mesa Wholesalers with credit terms...
Santa Fe Retailing purchased merchandise “as is” (with no returns) from Mesa Wholesalers with credit terms of 2/10, n/60 and an invoice price of $19,400. The merchandise had cost Mesa $13,231. Assume that both buyer and seller use a perpetual inventory system and the gross method. 1. Prepare entries that the buyer records for the (a) purchase, (b) cash payment within the discount period, and (c) cash payment after the discount period. 2. Prepare entries that the seller records for...
Prepare the appropriate journal entries for Macy Co. to record each of the May transactions. Macy...
Prepare the appropriate journal entries for Macy Co. to record each of the May transactions. Macy is a retailer that uses the gross method and a perpetual inventory system, and purchases these units for resale May 3 Allied made its first and only purchase of inventory for the period on May 3 for 1,000 units at a price of $9 cash per unit (for a total cost of $9,000). 5 Allied sold 500 of the units in inventory for $13...
Adjusting entry for customer refunds, allowances, and returns Statz Company had sales of $1,800,000 and related...
Adjusting entry for customer refunds, allowances, and returns Statz Company had sales of $1,800,000 and related cost of goods sold of $1,150,000 for its first year of operations ending December 31. Statz provides customers a refund for any returned or damaged merchandise. At the end of the year, Statz estimates that customers will request refunds for 1.5% of sales and estimates that merchandise costing $16,000 will be returned. Assume that on February 3 of the following year, Buck Co. returned...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT