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

2. 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

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

4. 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, $ 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

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