2007-10-04 23:26:45 · 5 answers · asked by shano 2006 1 in Business & Finance ➔ Other - Business & Finance
What is the journal entry when receiving and when issuing a credit note?
1. Let's say you bought something on credit for $100 and you returned goods worth $20. You would receive a credit note for $20. Your journal entry:
Dr Merchandise inventory 100
Cr Accounts payable 100
Dr Accounts payable 20
Cr Merchandise inventory 20
2. Let's say you sold something on credit for $100 (costing $50) and the customer returned goods worth $20 (costing $10). You would issue a credit note for $20. Your journal entry:
Dr Accounts receivable 100
Cr Sales 100
Dr COGS 50
Cr Merchandise inventory 50
Dr Sales returns 20
Cr Accounts receivable 20
Dr Merchandise inventory 10
Cr COGS 10
2007-10-05 02:17:49 · answer #1 · answered by Sandy 7 · 1⤊ 0⤋
1
2017-02-28 03:44:01 · answer #2 · answered by ? 3 · 0⤊ 0⤋
Dr notes receivables
Cr A/R
Dr cash
Cr notes receivables
2007-10-05 02:37:49 · answer #3 · answered by Dsalah s 3 · 0⤊ 0⤋
Love
2016-03-13 07:08:11 · answer #4 · answered by Anonymous · 0⤊ 0⤋
what is journal
journal is a book in which all the transactions of the business are recorded. the transaction are recorded in order of occurence. it is also known as a book of original record or a book of original entry or day book.
im, not getting ur first question what do u want to ask
ask clearly in description
2007-10-05 00:41:12 · answer #5 · answered by Anonymous · 0⤊ 1⤋