LESSON 10-3 Recording Transactions Using a General Journal 7/9/2019 LESSON 10-3 Recording Transactions Using a General Journal

Sales Returns & Allowances Classification - Contra revenue account – decreases Sales Normal debit balance Sales Return – return of all merchandise purchased Sales Allowance – return of part of the merchandise purchased Source document – Credit memorandum Sales Ret. & Allow LESSON 10-3

CREDIT MEMORANDUM FOR SALES RETURNS AND ALLOWANCES page 285 LESSON 10-3

JOURNALIZING SALES RETURNS AND ALLOWANCES page 286 March 11. Granted credit to Village Crafts for merchandise returned, $58.50, plus sales tax, $3.51, from S160; total, $62.01. Credit Memorandum No. 41. 2 4 1 3 5 6 9 8 7 1. Write the date. 6. Write the sales tax amount. 2. Debit Sales Returns and Allowances. 7. Write the accounts to be credited.- Accounts Rec./Customer Name 3. Write CM and the credit memorandum number for the Doc. No. 8. Draw a diagonal line in the Post. Ref. column. 4. Write the amount of the sales return. 9. Write the total accounts receivable amount. 5. Debit Sales Tax Payable. LESSON 10-3

TERMS REVIEW sales return sales allowance credit memorandum page 287 LESSON 10-3