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

Explain about the management accounting, Explain about the Management accou...

Explain about the Management accounting Management accounting has also changed by becoming more outward looking in its focus. In past, information provided to managers has bee

Nature and purpose of closing entries, Closing Entries based accounting que...

Closing Entries based accounting question a)  Describe the nature of Closing Entries.  I.e. what is the purpose of closing entries?                     b)  For each of the f

Interpret the coefficients , A Use the CPS data to calculate mean log(wage)...

A Use the CPS data to calculate mean log(wage) for women and men. log(wage) is coded as the variable LNWAGE and the variable FE is coded 1 for female and 0 for male.) First use the

Adjusting entry, office supplies on hand at year-end amounted to 3000.

office supplies on hand at year-end amounted to 3000.

Draw a stem-and-leaf plot for the data set, Draw a stem-and-leaf plot for t...

Draw a stem-and-leaf plot for the data set. (Enter numbers from smallest to largest separated by spaces. Enter NONE for stems with no values.)  Data set A: The annual wages of

What is differences in access to financial information, What is differences...

What is differences in access to financial information Distinction between the two areas of accounting reflects, to some extent, differences in access to financial information.

Similarity in financial and management accounting & finance, 1.  What are f...

1.  What are financial accounting, management accounting, and finance? What are their similarities and differences? 2. What information does a balance sheet provide? How do acco

What are the steps for closing entries, What are the steps for Closing entr...

What are the steps for Closing entries There is a certain order that should be used to close accounts: REID 1.  Balance of the total R evenue to Income Summary 2.  Bal

Ledger, ledger is said to be the principal book entry and the transactions ...

ledger is said to be the principal book entry and the transactions can even be directly entered into the ledger account. elaborate on the statement and explain why journal is neces

Explain about accrual basis and periodicity, Q. Explain about Accrual basis...

Q. Explain about Accrual basis and periodicity? Accrual basis and periodicity demonstrated that financial statements more accurately reflect the financial status and operations

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