you-returned-damaged-goods-you-had-previously-purchased-from-cc-rogers-inc-and-received-a-credit-mem

Question

You returned damaged goods you had previously purchased from C.C. Rogers Inc. and received a
credit memo for $\$250$. Which journal would your company use to record this transaction?
A. sales journal
B. purchases journal
C. cash receipts journal
D. cash disbursements journal
E. general journal

Puneet Prajapati · Accepted 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 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?

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 the meaning. Rated save forward by that revealing this dandy. Do you get expects? Okay, so Italy first. Who? The transaction involving movement off goods and services. Oh, where? But the payment will be made That leader or in due time. Okay, so we have return the technical definition that it refers to movement off books. However, we will understand this to an example, so but you can reflect the definition for future different sorts. Okay, so So that is why I usually write the definition first, then example of us now. Alexis Opponent dated mystery always up is this order. And it is Mr is there. Okay, now what happens then? Mr. E Supplies and emergency services. Okay. Glad to support $1000. No. What happens, Mr Say Mr. Z or Mr Sex Sector Mystery that I will be. But then one money. Okay. The payment will not be made immediately, so back becomes the instead. Software did see Okay. Say long pregnant basis. Know what happens to regard that connection? They will be do items, defector. Okay, First of all, Decker&#x27;s no who are the victors because on the what sins From whom the amount of dissident. So as in the current keys, Mr Z Visa Decker for Mr Okay. So you can write on your books. However, I will also make a decision. Okay, so Mr said, Well, we&#x27;re doctor for Mr Okay, because the amount is it recoverable from misters Zach. OK, because he has promised to pay with environment. But after women. Okay. And second, is this a lighter? That is the actual because when Mr Isolde, certain groups of $1000 to Mr Zane. So they will be the revenue which is being generator okay in farmer sale of goods and services to Mr Said. So that is why do accounts will be affected? Must afford necklace thinking What is C? However, that matches with forget. So that matches with our choice e However, council civilian doctors can be used interchangeably, okay, and sale will remain seen. So I see is the correct answer. However, you can write what I have been so far. But Joy sees the correct answer as we have derived. That&#x27;s all

Puneet Prajapati · Answer

Okay, so let&#x27;s understand the current solution. But before moving on to the solution, we will in distant worked a portion is saying, actually. Okay, so the question is saying that a company a company has made sail off 3 $50. Who customer All credit basis. Okay, So I will make you understand the transition from a diagram. Let&#x27;s suppose a company sold some blips for sale price. You have $2. However, the B has not been the amount. Okay, that&#x27;s very, very clear. The amount has to be paired. Bye, Mr Beetle. A company. Okay, so it is known as sail on credit basis. Okay, this is very clear. Now, let&#x27;s move to our solution so that incomes date quick. We will talk about as the main part of solution for other question. Okay, so we will draw the income statement for May who understand dissolution more clearly. Okay. Know what happens whenever a company? It is the in the A company is preparing the income income statement. Okay, Now what happens? This is the former, which we usually follow by anticipating that income stream. So we have a new we have expenses and it defined 11 Either we will make profit or it&#x27;ll baby. Either we will make it or we will make losses. That&#x27;s very clear, because in business it that they will be making profit or losses. If they have a new site will be more then it will be profit if they expenses, side will be, but it will be a loss. So revenue includes Gash City as the less guarded. See why they&#x27;re so because the company is following a cruel system off a cruel system. Okay, what is the meaning of accrual, sister that vetter The gash has been received for sale. Who, customer or not? If the goods or services has been provided to customers, the sale will be recorded in revenue. The amount will be recorded here. Okay, that is why you never In other question, it has been said that if the A company and sold 3 $50 of materials to Mr B. But B has Mr B has not paid to the A company, so 3 $15 will be recorded here at this at this point, okay, to make sure that that revenue will be recorded. As for the accrual system of accounting in the books off a company. Okay, that is very clear. Another basis of that, we will deduct the expenses. Like whatever expenses has been incurred to make that sale. Based on that, we will derive our profit as well s losses. Okay, so we have the right solution. What is the solution? They will be showing the sale as $300 in revenue and income statement. So the correct choice is be OK. 3 $50 will be shown in incomes frequent, as are saying so you need toe right up, right down the first sheet as very second sheet on your notebooks who understand the solution more clearly. However, the solution is choice be. Thank you.

Problem

Sold goods for $\$650$ cash. Which journal would …

Problem 14 Easy Difficulty

You returned damaged goods you had previously purchased from C.C. Rogers Inc. and received a
credit memo for $\$250$. Which journal would your company use to record this transaction?
A. sales journal
B. purchases journal
C. cash receipts journal
D. cash disbursements journal
E. general journal

Answer

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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