1. Recording Transactions Using a General Journal

2. General Journal General Journal
A journal where all types of entries can be recorded.
There are only two amount columns and used when the business cannot attribute the account to any of the special journals.

3. Purchases Returns and Allowances
When a customer is unsatisfied with merchandise, they are typically allowed to return part or all of their merchandise. This type of transaction is a Purchases Return. If the product is still usable or of lesser quality the vendor may offer a decrease in the account payable. This type of transaction is a Purchase Allowance A debit memorandum is a document the customer creates to identify the return or allowances.

4. DEBIT MEMORANDUM FOR PURCHASES RETURNS AND ALLOWANCES
Lesson 18-4, page 471

5. JOURNALIZING PURCHASES RETURNS AND ALLOWANCES
March 8. Returned merchandise to Second Round, Inc. $143.00, covering Purchase Invoice No Debit memorandum No. 78.
Accounts Affected
Accounts Payable
Purchases Returns and Allowances
Classification
Liability
Contra cost
Change
Increased
Entered
Debit side
Credit side
Bal
Second Round, Inc.
ACCOUNTS PAYABLE LEDGER
GENERAL LEDGER
Accounts Payable
Purchases Returns and Allowances
normal balance
normal balance 
143.00
143.00
(New Bal )
normal balance 
143.00
Lesson 18-1, page 472

6. JOURNALIZING PURCHASES RETURNS AND ALLOWANCES1 2 3 4 5 6 7
1. Write the date.
2. Write the account title and vendor name in the Account Title column.
3. Place a diagonal line in the Post. Ref. column.
4. Write the debit memorandum number.
5. Write the debit amount.
6. Write the account title.
7. Write the credit amount.
Lesson 18-4, page 472

7. JOURNALIZING BUYING SUPPLIES ON ACCOUNT
Because supplies are not merchandise, they would not be recorded in the Purchase Journal, use the General Journal.
- March 9. Bought supplies on account from Winter Supplies, $ Memorandum No. 26.
Accounts Affected
Supplies
Accounts Payable
Classification
Asset
Liability
Change
Increased
Entered
Debit side
Credit side
GENERAL LEDGER
Supplies
Accounts Payable
Winter Supplies
ACCOUNTS PAYABLE LEDGER
normal balance
normal balance 
316.00 
316.00
normal balance 
316.00
Lesson 18-4, page 473

8. JOURNALIZING BUYING SUPPLIES ON ACCOUNT4 2 3 1 6 5 7
1. Write the date.
2. Write the account title. 3
3. Write the memorandum number.
4. Write the debit amount.
5. Write the account title and vendor name in the Account Title column.
6. Place a diagonal line in the Post. Ref. column.
7. Write the credit amount.
Lesson 18-4, page 473

9. POSTING FROM A GENERAL JOURNAL2
1. Date 1 3 5
2. Journal Page Number
3. Credit
4. Account Balance
5. Account Numbers 4
Lesson 18-4, page 474