Question

record the transaction in the ledger(double entry) and write in the appropriate folio reference..

may 5 we return goods costing $3000 to D.SMith

May 2..J.James returned goods to us costing 5000

What Is really important is the information for the folio , I want to know what would be written in the folio for both account

Answer 1

        Inventory Accounts

May 2	To cost of goods sold	5000	May 5	By Accounts payable	3000

  

      Cost of goods sold

			May 2	By inventory	$5000

     

Accounts payable

may 5	To inventory	$3000

Note:-   Adjusting entries are as follows:

Date	Accounts title	Dr	Cr
May 2	Inventory	5000
	To cost of goods sold		5000
	[Being returned goods costing $5000]
may 5	Accounts payable	$3000
	To Inventory		$3000
	[Being return goods costing $3000 ]