An example of an accounting entry for the selling company, when a purchase has been returned?

Question

Question

Answer 1

Answer #1

1. If the purchase was made on account and periodic method is followed:-

Accounts payable	debit
Purchase return		credit

2. If the purchase was made in cash and periodic method is followed:-

Cash	debit
Purchase return		credit

3. If the purchase was made on account and perpetual method is followed:-

Accounts payable	debit
merchandise inventory		credit

4. If the purchase was made in cash and perpetual method is followed:-

Cash	debit
merchandise inventory		credit

Answer 2

Similar Homework Help Questions

Short selling is selling stock that has been borrowed and must be returned in the future....

Short selling is selling stock that has been borrowed and must be returned in the future. True False
For what reasons might a company purchase its own stock? Is the accounting different when a...

For what reasons might a company purchase its own stock? Is the accounting different when a company purchases its own stock, and if so how? How does it affect the stockholders' equity section? Distinguish among and provide an example of the following terms: Cash Dividends Property Dividends Liquidating Dividends Stock Dividends Why would a company use each of these types of dividends?
What is the double entry accounting system? Provide an example

What is the double entry accounting system? Provide an example

what is the journal entry to record the merchandise returned when the original amount sold on...

what is the journal entry to record the merchandise returned when the original amount sold on account was $503.50 ($475.00 sales plus $28.50 sales tax) and the customer returned merchandise on November 6, 2007 for which they were charged $62.01 ( including sales tax).
the entry in a firm’s accounting records for a credit customer’s check that was returned by...

the entry in a firm’s accounting records for a credit customer’s check that was returned by the bank marked “NSF” would include X M MHE Reader MC Qu. 9-56 Included with its bank statement a firm... Included with its bank statement a firm may receive a credit memorandum, which could indicate 1 Multiple Choice C ) bank service charge deducted from the firm's account balance 0 C ) the bank's return of a dishonored NSF check that was sued by...
Record the following transactions using the below accounting equation. The first one has been completed for...

Record the following transactions using the below accounting equation. The first one has been completed for you as an example. Make sure to indicate the specific account name and use a + or – sign to indicate if the over Record the following transactions using the below accounting equation. The first one has been completed for you as an example. Make sure to indicate the specific account name and use a + or – sign to indicate if the overall...

An example of an adjusting entry would include: a. Closing revenues to retained earnings b. Purchase...

An example of an adjusting entry would include: a. Closing revenues to retained earnings b. Purchase of office supplies on account (and remain unused). c. Interest owed on borrowed amounts. d. Collection of cash from customers. e. Dividend payments to stockholders. A company had the following transactions: 1. Receive cash in advance from customers, $400. 2. Provide services to customers on account, $500. 3. Pay cash for maintenance costs in the current period, $100. 4. Incur (but do not pay)...
Q: What is the rule of double-entry accounting? Explain and provide an example.

Q: What is the rule of double-entry accounting? Explain and provide an example.
1. What document does a customer receive when goods are returned? a. purchase order d. receiving...

1. What document does a customer receive when goods are returned? a. purchase order d. receiving report b. credit memo e. bill of lading C. debit memo 2. In order to maintain controls over cash receipts, cash is typically deposited while a bank reconciliation is performed a. daily, weekly b. daily, monthly c. weekly, monthly d. monthly, daily e. weekly, weekly 3. In the cash disbursements cycle, the vendor invoice is marked paid when a check is issued in order...

1) If a company is using accrual basis accounting, when should it record revenue? A) when...

1) If a company is using accrual basis accounting, when should it record revenue? A) when cash is received, even though services may be performed at a later date B) when services are performed, even though cash may be received at a later date C) before services are performed D) when cash is received, 30 days after the completion of the services 2) When does a company account for revenue if it uses cash basis accounting? A) when services are...