1. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 10-3 Recording Transactions Using a General Journal

2. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 2 LESSON 10-3 CREDIT MEMORANDUM FOR SALES RETURNS AND ALLOWANCES page 285

3. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 3 LESSON 10-3 JOURNALIZING SALES RETURNS AND ALLOWANCES 1 2 3 4 6 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. 7 8 9 5 1.Write the date.6.Write the sales tax amount. 2.Write Sales Returns and Allowances. 7.Write the accounts to be credited. 3.Write CM and the credit memorandum number. 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.Write Sales Tax Payable.

4. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Journal Review Purchases Journal – purchased merchandise on account Cash Payments Journal – purchased supplies with cash, paid for utilities/bills with cash, paying bills for things previously charged on account General Journal – returned merchandise to vendors (DM), sales returns/allowances (CM), charging supplies, bills, etc. (non merchandise) Sales Journal – sales on account Cash Receipts Journal – received money from customers on account, cash/credit cards from sales 4 LESSON 10-3

5. CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 5 LESSON 10-3 TERMS REVIEW sales return sales allowance credit memorandum page 287