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Journal Entry For Purchase Purchase Return Book

 
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MessagePosté le: Ven 7 Juil - 03:55 (2017)    Sujet du message: Journal Entry For Purchase Purchase Return Book Répondre en citant


Journal Entry For Purchase: Purchase Return Book
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<strong>Blank Purchase Return Log </strong>

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Include sections for:
<ul><li>Name of Customer/Supplier</li><li>Date</li><li>Description</li><li>Debit Note Number</li><li>Folio</li><li>Amount</li><li>Reasons for Return</li><li>Notes</li></ul>
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Journal Entry For Purchase: Purchase Return Book Insignia Accounts


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They didnt buy the right productAccounting Blog Accounting Training, Tips, and News Store credit Rather than refunding a customer with cash, you might credit merchandise at your businessFor example, you record a payable when you receive a bill from a supplierWe discussed this concept in the perpetual-periodic inventory comparisonAgain, the above two entries are combined in a period inventory system as shown below:If you consider some recurring transactions (such as sales) that will hopefully occur many times during an accounting cycle, all this double entry can add up to a lot of workThe way you record a return from a cash-paying customer differs depending on how you plan to refund themThese 4 different ledger accounts will be updated from the purchase returns bookYou can also compensate the customer for the return with store credit or a cash paymentA combination of debits and credits balances your accountsFollowing are the typical journal entries under a periodic inventory system:

Entries in the accounts payable account are called payablesThe journal entry is shown below:Medici is returning inventory, which means the balance in the inventory account is decreasingIf an account is increased by a debit, it is also decreased by a creditI find it very helpful to do a T-account for these accounts so you can keep track of the balances, especially when you must calculate the amount that should be paidThe entries increase your liabilities and decrease your net salesThat's where special journals come into playRecording a purchase return for a sale made on credit is a little different than when a customer pays cashDetails Amount Note: A column for Remarks can also be added in the purchase book which would include a brief description of the reason for whythe goods were returnedPurchase Return Accounting Equation Assets = Liabilities + Owners Equity None = Accounts payable + Purchase Returns 0 = -2,000 + 2,000 In this case a liability (accounts payable) is reduced as the amount owed to the supplier is cancelled, this reduction is balanced by the increase in owners equityThe names are pretty basicWe are tracking dollar valueFor this transaction the Accounting equation is shown in the following tableCost of goods sold is determined either as a balancing figure in the closing entry shown at the end or by using the following formula:The entries lower your net salesPurchase returns for when a customer paid cash Sometimes, businesses accept cash payments, a check, or a credit card for productsRemember, the rules for perpetual and periodic inventory still apply so we will look at both cases here 07f867cfac



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