Explain about purchase returns and allowances, Accounting Basics

Assignment Help:

Q. Explain about Purchase returns and allowances?

Purchase returns and allowances A purchase return takes place when a buyer returns merchandise to a seller. When a buyer receives a decrease in the price of goods shipped a purchase allowance results. After that the buyer commonly uses a debit memorandum to notify the seller that the account payable with the seller is being reduced Accounts Payable is debited. The buyer may perhaps use a copy of a debit memorandum to record the returns or allowances or may wait for confirmation typically a credit memorandum from the seller.


Related Discussions:- Explain about purchase returns and allowances

Accounting concept, what is the implication of applying accounting concept ...

what is the implication of applying accounting concept wrongly

A simple discount note for $6, a simple discount note for $6,600 at a ordin...

a simple discount note for $6,600 at a ordinary bank discount rate of 8.61% for 60 days. What is the effective interest rate? Round to the nearest tenth of a percent

Payroll, Ask queMary Lapointe, the Chief Financial Officer of your Northern...

Ask queMary Lapointe, the Chief Financial Officer of your Northern Travel Experience company, has advised that the company will be opening an office in Nunavut this year. The offic

Under and over absorption, A company absorbs overheads on machine hours tha...

A company absorbs overheads on machine hours that are budgeted at 11,250. The budgeted overhead is $281 250.  Results illustrate actual hours of 10 980 and overhead of $276 652.

Explain about freight collect, Q. Explain about Freight collect? Freigh...

Q. Explain about Freight collect? Freight collect indicates the buyer should initially pay the freight bill on the arrival of the goods. To demonstrate the use of these terms s

Non-current assets, What should companies not show as non-current assets in...

What should companies not show as non-current assets in their balance sheets? A  plant bought on hire purchase B  plant fully depreciated C  plant held on finance leases D  pla

Accounting principle , The salaries paid in 2004 is Rs. 5,00,000; Salaries ...

The salaries paid in 2004 is Rs. 5,00,000; Salaries outstanding  is  Rs. 20,000; Salaries paid in advance for 2004 is Rs. 30,000. What is the actual salary expenditure for 2004? Wh

Uses of technology in accounting, Q. Uses of technology in accounting? ...

Q. Uses of technology in accounting? The computers of persons in a given building or department are frequently connected in a Local Area Network (LAN). These persons are able t

Debits and Credits, When does something that is a debit becomes a credit?

When does something that is a debit becomes a credit?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd