Credit memo or credit note No. is entered in which of the following journal?
Correct answer: D. Sales return day book
- A. General journal
- B. Cash journal
- C. Purchase journal
- D. Sales return day book
Explanation
A seller issues a credit note when goods are returned by a customer or an overcharge is corrected, so it supports entry in the sales return day book. A purchase return entry is normally based on a debit note received or issued by the buyer.
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About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
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