1. LESSON 9-4 Journalizing Other Transactions Using a General Journal
11/14/2018
LESSON 9-4
Journalizing Other Transactions Using a General Journal
Original created by M.C. McLaughlin, Thomson/South-Western
Modified by Deborah L. Burns, Johnston County Schools, West Johnston High School

2. MEMORANDUM FOR BUYING SUPPLIES ON ACCOUNT
page 254
Not all transactions can be recorded in special journals
When a business buys supplies on account, an invoice is received from the vendor which is similar to the purchase invoice received when purchases are made
To make sure no mistake is made, a memorandum is attached to the invoice, noting the invoice is for supplies
LESSON 9-4

3. BUYING SUPPLIES ON ACCOUNT
LESSON 9-4
11/14/2018
BUYING SUPPLIES ON ACCOUNT
page 255
November 6. Bought store supplies on account from Gulf Craft Supply, $ Memorandum No. 52. 2 4 3 7 1 6 5
1. Write the date.
5. Write the account title and vendor name.
2. Write the account title.
6. Place a diagonal line in the Post. Ref. column.
3. Write the memorandum number.
4. Write the debit amount.
7. Write the credit amount.
LESSON 9-4

4. DEBIT MEMORANDUM FOR PURCHASES RETURNS AND ALLOWANCES
page 256
Customers may not want to keep merchandise that is inferior in quality or is damaged when received.
Credit allowed for the purchase price of returned merchandise, resulting in a decrease in the customer’s accounts payable, is called a purchases return
When merchandise is damaged but still usable or is of different quality than that ordered, the vendor may let the customer keep the merchandise at a reduced price
Credit allowed for part of the purchase price of merchandise that is not returned, resulting in a decrease in the customer’s accounts payable, is called a purchases discount
LESSON 9-4

5. DEBIT MEMORANDUM FOR PURCHASES RETURNS AND ALLOWANCES
page 256
A purchases return or allowance should be confirmed in writing
A form prepared by the customer showing the price deduction taken by the customer for returns & allowances is called a debit memorandum
Purchases Returns & Allowances is a contra account to Purchases
The debit memorandum is used as the source document for journalizing purchases returns & allowances
LESSON 9-4

6. JOURNALIZING PURCHASES RETURNS AND ALLOWANCES
page 257
November 28. Returned merchandise to Crown Distributing, $252.00, covering Purchase Invoice No. 80. Debit Memorandum No. 78. 2 5 1 3 4 6 7
1. Write the date.
4. Write debit memorandum number.
2. Write the account title and vendor name.
5. Write the amount.
6. Write Purchases Returns and Allow.
3. Place a diagonal line in the Post. Ref. column.
7. Write the amount.
LESSON 9-4

7. TERMS REVIEW purchases return purchases allowance debit memorandum
page 258
purchases return
purchases allowance
debit memorandum
LESSON 9-4