Credit note is the basis for recording a transaction in which of the following SPECIALIZED journals?
Correct answer: B. Sales return journal
- A. Purchase journal
- B. Sales return journal
- C. General journal
- D. Cash receipt journal
Explanation
A seller sends a credit note when accepting a customer's return, making it the basis for recording a sales return. The sales return journal is therefore the relevant specialized journal.
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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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