a-customer-obtains-a-purchase-allowance-from-the-retailer-in-the-amount-of-220-for-damaged-merchandi

Question

A customer obtains a purchase allowance from the retailer in the amount of $220 for damaged
merchandise. Which of the following represents the journal entry for this transaction if the customer has not yet remitted payment?
A. TABLE CANNOT COPY
B. TABLE CANNOT COPY
C. TABLE CANNOT COPY

Puneet Prajapati · Accepted Answer

we&#x27;ll get him. Let&#x27;s understand the current solution. Crumbs from the rules. So we have diamond roots of company, okay? And buy diamond rules of accounting. Before that, they will understand why the diamond was by the by. We have diamond rules. Okay? These rules are are to regard General Yankee in the books of the problems of the company. Okay, so first of all, meeting right, increasing a sex queasiness there&#x27;s on expenses will always be there to die like men. We will have when we will have increasing a sect and expenses with these type of accounts. Then be left debit and three of those items. Okay. However, if they will be decrees and asset and expenses accounts, so they will be credited on Lee that. But we will be considering that. Okay, So sorry for the disruption. So, in easing liabilities, cabinet and live in you, we&#x27;ll always be credit. You need to write it down. So that didn&#x27;t any case. If you will encounter with some problems so that given so that you&#x27;ll get to revise it before the exams. So forget it. Who so degrees in liability? Capital revenue for peace. David, Now in the current question What we have been given that what will be that? Gotta spending which of the falling tarnishing questioned, evident and tried to cash. It means, David every means. So get cash is what gashes consider under six. Okay, what is gang minutes like this? Being your first cash is nothing but the balance maintained by the entity. Okay, The balance maintained by the entity for day to day for the directive. It isn&#x27;t in any business entity. Okay, so balance, mundane a d and D. So that is considered as an insect. Okay, so what, you&#x27;re saying that whenever they will be increased in a sex, so they will be a debit. Who guess? Okay and credit. Do the party from which be receiving the guests. Okay. From which we are receiving cash. Okay. No. So, John, they&#x27;re falling. So? So the correct choice expert, that detail, unless is we have just done. But it Joyce problem 37 for Colin Techniques. Heaviness. See? And how Howard will we see? Because we have collector balance. Really? That&#x27;s tomorrow. What is balance? That&#x27;s understandable. Let&#x27;s say suppose we have sold some goods or services or select city have sold some foods and beverages to our customers. But the customer is saying that pay you off after a certain period of time. Lex. Detective Hayes. Now, in that case, the balance becomes recovered from the customer. Now, whenever we will recover the balance of the customer, it will become s inform off cash into our cash reserves into our cash holdings. Okay, so that is why so we will have increasingly sex because cash is considered as an insect. Therefore daily, they will be adapted to the guess. Okay, so that&#x27;s all for the solution. Thank you.

Puneet Prajapati · Answer

Okay, so let&#x27;s start on a solution, Okay? But don&#x27;t No, no. The basis to outdo the right solution must depart. We will understand diamond or something. Okay, that will guide us throughout the accounting subject. That how to party financial transaction in the books of a concert. Okay, these rules are very straightforward. So there&#x27;s no Oliver. There is no logic behind it. However, these other tradition matters, but diamonds of accounting have been just invented. Right? Let&#x27;s if I just accessible. Okay. So when am so there are five type overcomes and for all of fight them. Okay, B leaving the guard. The general increase Africans in financial transactions in the books of the gums for ring by diamond roots up. Okay, so let&#x27;s say the F five never comes. First of all, a sex and expenses and whenever they will be an increase in a second expenses, they will be corresponding debit to those accounts which which would be considered it, which will be considered as a sex our expenses. However, if there will be a decreasing a sex and expenses, then there will be credit. Do those who comes. Okay. Is that you? There is no logic behind this. These are just that traditional terms like like mice that there is no alternative definition to gravity. That why it has been invented. Okay, so that is similar. Like the diamond. Lots of a country. Okay, Now, let me give you the second dinner. Only clue was, however, there are forced four rules, actually. Look, but we need to remember all of this. Otherwise, what will happen before the exams? We will not be able to devise name properly. Also, along with that, you have to write it down in your notebooks. What? Okay, so this this is credit decrease in liabilities of a new capital. Okay, well here, David. So these are the five type of accounts we do have. Okay. First capital revenue liabilities, a sex on expenses. Okay. No, what happens whenever we talk about the remaining? What is the revenue like to suppose we are in the business of selling? Video games are fours and beverages to our customers. Okay. Now, whenever we will see some goods or services to our customer, then the village and bread the revenue from those customers so our revenue will be mostly comprised or reconsider. Revenue will consist off sales plus other didn&#x27;t go. Oh, yeah, but they didn&#x27;t go. I will not be considered as a revenue. But still, I am reading it because you will face this this town simulator problems, Howard, this is the main revenue originate from our customers. So what we have, as per the rules, whenever there will be an increase in the revenue that will be presented by a corresponding credit revenue. Okay. Now what happens? Which of these transactions as Pacific Ocean? Which of these transaction requires a credit and burrito? I live in you. Okay, so the correct choice, the characters for for problem 38 from problem 38 is a by that. So because what is happening? The gash is coming to us. Okay, so if cash is coming to us, then cashes in closing. Okay? So there will be a David too. However, we are selling, we are performing. The service is against the received off the menu. So there is also increasing revenue. I got it. If there is also increasing that we knew then what is that? What is a way of representation toe to reflect increasing revenue. It&#x27;s a credit. So that is right. We generally don&#x27;t write the revenue if we ever received their If you receive the cash in the against the revenue, we generally light says that. Okay, so this is the This is the general NT. You need to like everything. What African on both of these years in your notebooks. So that you will be able to understand what? That what I have bean to derive the solution. Okay. So different solution of this one. How, however appropriate solution to the problem is this one. Okay, so we will be Well, get out or to give a credit. Do sales sales account like us denizen. Reason revenue. Okay, as of now, for every problem in the country, you will get help from the diamond itself. Accounting. Okay, So please make sure that you will realize them all of the rules before your example before anything but you will face in the future. Okay, That&#x27;s all for the solution. Thank you.

Puneet Prajapati · Answer

Okay, so we are going to understand the meaning. Lost credit production. Okay. And we will also understand that what are the neutral respects? Offsets drug addiction. What is the connection that involves drones? Foot? Oh, the jobs and services. Who customer. But that be made will be need later point in time. Okay. No. What does that mean? That that delivery of Georgians have? This is very take place in first place. Okay, Like the supplier will deliver goods and services to customers. Our customers will say that I will tell you in later, at later point in time. Okay, now what happened? Let&#x27;s suppose there is Mr Day. Who is Ah, business owner. Okay, who is a business one. However, there is Mr Mr X. Who is this? A play. So in almost every in the street, more in almost every industry except in case of servicing mystery. There is the The conviction matter on basis of credit is very, very popular Night. Let&#x27;s suppose Mr Expense applied the words Soviet growing example. Okay. However, to make understand distribution, give Mr Excellent supply goods. Gloves off. Let&#x27;s say $100 now. What happened? Mr even say Mr X That I will pay you regulate upon intact. Okay, if that will happen. No, No. After that, Mr Ray said What happened? That out of those words, let&#x27;s say out off regulars. Okay, out of hundreds, hundreds, then you nerds found with defective by Mr Okay. And units found to be detective No, in orderto regard that effect in orderto record that effect. What will happen, Mr A Will, Mr Day will give effect to two types of accounts. Okay, so first type of a cone will be ago speeding. Okay, maybe a ghost are We can interchangeably. We can order me to see Vegas. Okay. And second oneness stock. Because what happened after receiving the 100 units? So Mr A would have recorded 100 units on his books. But after fun finding any interest effective Mr Avery degrees its stock back then, units, because Spaniards. But you&#x27;re going crucifix. And therefore, after that, Mr it will have to pay now less then previously. Because Mr we will not be liable to pay for 10 minutes which found with defective. So that is why they will be decreasing craters. Also, craters are in this case is Mr X who has to be paid. Let me said so. Therefore, these accounts will be effective. Yes, in this transaction or what? I have said this example. Oh, good. Okay. So that so What We have derived. Okay, that matches with Joyce. Okay, So choice A is the correct solution. Okay, So stock and craters account will be effective if these transactions ville. Okay. Okay. So, Joyce A is the correct answer. That&#x27;s all for the solution. Thank you.

Puneet Prajapati · Answer

Okay, so let&#x27;s understand that how many times off but gazing mediums we have, like So how many mediums weekend initiate our chasing down their chins off its okay, All right. But it is not on either arm hits and unite both goods and services. Okay, so first up on begin. But she is any type off religion services on a cash basis, then on this is okay. So in terms off gas bases, there is a chimney production that, first of all, they will be delivery aubergines offices against Yes. Okay. Against cash. So that is what we have. Like, this is purchasing media ve vill or business. Incredible. Deliver emergency services to the customer and the customer will pay cash against the ability. Okay. I don&#x27;t think this is what happens. Then there is a delivery of goods and services. Okay. That is delivery of goods and services, Turkistan, the customer stays. I will make a mental. You&#x27;re depending that okay? Like it is also known expertise on traffic. Okay, But what happens when customer find something defective in the goods or services? Because the mother turns the Gordon&#x27;s up in this study supplier before making the payment know what happens if, if the actual purchase has been made has been made on it. Okay. A If the customer also turns the defective goods to the supplier, then what happened to accounts empty effected from those damages. Okay for partying most of all there decades ago. Okay. And 2nd 1 is sees you doing and launches. Okay. Why did this about? Because the purchase or sale has been made on credit. So that is why we will have effect contact as they come. And we will have effect on sales returning about launches because account 40 translate chin into stepped off, return off. Good return off defective fortunes of his sister supplier rebuild. They will be effect on sales. Ritalin allowances. Okay. No, As the current solution to our question here, I didn&#x27;t be fired that Joyce D is correct. Okay, because that Joyce is containing who? Two important accounts that will be affected. Yes. The purchase will you meet don&#x27;t credit for so far, and that defective goods really be returned by customers for the suppliers. Okay, so you can write down. But I have returned so far, okay? For making for making the concept to get our choice to use the correct answer. Thank you.

Puneet Prajapati · Answer

Okay, so we will understand nights off, but just on a chip. Okay, So we everyone know. Okay, Everyone knows that to how many mediums weekend conduct our apologies off any day. Okay, so out off those who are most popular that oneness. Okay, so one off. Not the most popular, however, most no matter to everyone that this gash basis party storage, like ve vill lame that supported there will be a transaction with Mr A and Mr B. So Mr even supply goods okay, on Mr B will be dollars, $1,000,000 cash injured ALOF words. Okay against the Kurds delivered to Mr B. Okay, this is the catch my sister now in this direction, what happens there are who respects off this under chip. Okay, because off financial transaction will always have who respects or we can see a double effect. So? So the first effect is the moment off cash from Mr B two mystery and second bonus stop that is being moved from Mr A. Mr B. Okay. However, when we come to of a second type of production, that was the most popular one matter. Okay, I did basis replaces what happens in credit basis. However, Mr Able deliver groups. Okay, that is obvious. But what will happen, Mr Beaven say that mystery. I will pay you at a later point in time like within one month. Okay, But then one month, $1000 Good people. Now, in this transaction, there are also due respects because I have said that often. And Children ricin will always have a prolific. So it will be, of course, stark effect because the goods are being moved from his tip. Mr B. No, there is a second respect. Okay, on that set second inspectors prettiness. So craters are the are the persons or the entities which are to be here by the persons who have received goods and services from the craters. So in the Given kids, Mr B has received gentle business from mystery. So he has to pay $1000 with environment. So Mr B will be greater So you can draw Adaline so that you will be. And you would be able to understand that in this case we will be right. So the f I didn t fight that type of accounts we will need. They will be needed to the court The been recording deputies. Okay, so now that matches without Joyce. So I see. Because then recording approaches. They can be medical matters our better, Most important method. Sorry, who Most important methods are cash basis and created basis and the falling type of house we can use. However, in place off straight as we can use accounts people. Okay, so craters and accounts people can be used interchangeably. However, choice is the correct answer, okay?

Problem 16 Easy Difficulty

A customer obtains a purchase allowance from the retailer in the amount of $220 for damaged
merchandise. Which of the following represents the journal entry for this transaction if the customer has not yet remitted payment?
A. TABLE CANNOT COPY
B. TABLE CANNOT COPY
C. TABLE CANNOT COPY

Answer

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Mitchell Franklin, Patty Graybeal, Dixon Cooper

Principles of Accounting Volume 1: Financial Accounting

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Principles of Accounting Volume 1: Financial Accounting

Mitchell Franklin, Patty Graybeal, Dixon CooperPrinciples of Accounting Volume 1: Financial Accounting

Mitchell Franklin, Patty Graybeal, Dixon Cooper

Principles of Accounting Volume 1: Financial Accounting