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Determine about the Sales returns and allowances
Allowance results when a buyer decides to keep defective or damaged goods though at a reduction from the original price.
Return results when a buyer returns part, or all of the order
Recording Sales Returns and Allowances
A Credit Memorandum is original document
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Notes to financial statements
“Ledger is said to be the principal book entry and the transactions can even be directly entered into the ledger account.” Elaborate and explain why journal is necessary.
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