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BusinessTutor, Bachelor's Degree
Category: Business and Finance Homework
Satisfied Customers: 9808
Experience:  Working towards my MBA degree in Finance (Completed the Foundation Classes with a GPA 4.0)
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My question is about how to journalize a credit memo, do you

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My question is about how to journalize a credit memo, do you think you can help?



Please post your question



Please advise your deadline as well as the name of the book you are using: Title, author's name, and edition


Thank you

Customer: replied 4 years ago.
There is no book it is a question made up by the teacher. The question is when journalizing accounts the debit and credit must be equal I understand this. A customer returns an item to us and we return it to the manufacturs which creates a debit to sales return, but in turn we are issuing a credit memo to the customer, what account should I use. Since he is not a vendor I can use Accts Payable so I am confused about what account I should use.

Oh , ok


Can you please post the question the instructor gave you?

Customer: replied 4 years ago.

Issued debit memo number DM601 for $6880 and returned for credit, to Kawaski USA, one jet ski. The body of the jet ski was damaged during shipping. Kawasaki has agreed to accept the return. there are no freight charges. The AU150 was part of the June 6 purchase on account ( invoice K4461). Only one entry is required to properly record this transaction.

When the customer returns the merchandise to you:


Debit Merchandise Inventory

Credit Cash (or Accounts Receivables- if the sale was on credit)


When you return the item to the merchant:


Debit Accounts Payable

Credit Merchandise Inventory



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