1. Chapter 9, Section 4

2.  Used for any transaction that cannot be recorded in a special journal. Examples:  Buying supplies/equipment on account  Purchases returns and allowances

3.  Invoice for buying supplies on account is similar to invoice when buying merchandise on account.  When buying supplies, a memo is attached to the invoice to explain what was purchased.

4. 1 2 3 4 5 6 November 6. Bought store supplies on account from Gulf Craft Supply, $210.00. Memorandum No. 52. 1.Write the date.5.Write the credit account title and vendor name. 2.Write the debit account title. 6.Place a diagonal line in the Post. Ref. column. 3.Write the memorandum number. 7.Write the credit amount. 4.Write the debit amount. 7

5.  Purchases Return Credit allowed for the purchase price of returned merchandise  Purchases Allowance Credit allowed for part of the purchase price of merchandise that is not returned  Classified as a contra-cost account Contra account to Purchases Purchases Returns And Allowances Credit Normal Balance  

6.  A form prepared by the customer showing the price deduction taken by the customer for returns and allowances  Is called a debit memorandum because the Accounts Payable account is debited when there is a return or an allowance.

7. 4. Write debit memorandum number. November 28. Returned merchandise to Crown Distributing, $252.00, covering Purchase Invoice No. 80. Debit Memorandum No. 78. 1 2 3 4 5 6 1.Write the date. 5. Write the debit amount. 2.Write the account title and vendor name. 6. Write Purchases Returns and Allow. 3.Place a diagonal line in the Post. Ref. column. 7. Write the credit amount. 7

8.  Work Together 9-4 (Text pg. 258)  On Your Own 9-4 (Text pg. 258)  Application 9-5 (Text pg. 262)