Show purchase returns and allowances account, Accounting Basics

Assignment Help:

Q. Show Purchase Returns and Allowances account?

Both allowances and returns reduce the buyer's debt to the seller and decrease the cost of the goods purchased. The buyer may desire to know the amount of returns and allowances as the first step in controlling the costs incurred in returning unsatisfactory merchandise or negotiating purchase allowances. Therefore buyers record purchase allowances and returns in a separate Purchase Returns and Allowances account. If Hanlon returned USD 350 of merchandise to Smith Wholesale previous to paying for the goods it would make this journal entry

369_Show Purchase Returns and Allowances account.png

The entry would have been the similar to record a USD 350 allowance.


Related Discussions:- Show purchase returns and allowances account

t liabilities to equity ratio, t. liabilities ratio is the same as debt eq...

t. liabilities ratio is the same as debt equity ratio?

If you can earn 4 percent, If you can earn 4 percent, how much will you hav...

If you can earn 4 percent, how much will you have to save each year if you want to retire in 35 years with $ 1 million?

A vendor reduces an item listed at $140 on july 1st by 20%, A vendor reduce...

A vendor reduces an item listed at $140 on July 1st by 20%, and then reduces it another 25% on September 1st. What is the sale price of the good after the last reduction? A. $7

The formula for computing additional paid-in capital, The formula for compu...

The formula for computing additional paid-in capital in excess of par is shares of stock times Saturday

Computer based process solutions for accounts, Process Solutions provides a...

Process Solutions provides a computer-based document processing service. The accountant has produced the following analysis.   Standard Modifi

Accounting for investments, Contain the relevant authoritative literature o...

Contain the relevant authoritative literature on accounting for investments in held-to-maturity securities using the FASB's Codification Research System. What is the specific citat

Accounting systems from manual to computerized, Q. Accounting systems from ...

Q. Accounting systems from manual to computerized? The manual accounting system with merely one general journal and one general ledger has been in use for hundreds of years and

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