You make them to undesdand when we talk about debtors we talk about what
Credit note
[Debit] Allowance for debtors account [Credit] Accounts receivable account
sundry debtors A/c........DR 1000 TO Sales A/c 1000
Credit note
You make them to undesdand when we talk about debtors we talk about what
Credit note
[Debit] Allowance for debtors account [Credit] Accounts receivable account
sundry debtors A/c........DR 1000 TO Sales A/c 1000
Credit note
yep its returns
No entry for opening debtors these are just transferred from previous period to current period.
General Journal Sales Returns and Allowances - A company with sales returns and allowances can record them in the General Journal.
Cash a/c to debtors a/c
Sales returns journal records all sales return transactions only and no other transaction of business is recorded.
Debtors may sometimes be unhappy with their purchases and wish to claim a refund (allowance) from the supplier. Some reasons for this include poor quality goods, wrong colour, wrong size, overcharges, errors on the invoice, and so forth. The debtor then sends a debit note (D/N) to the trader in which the claim is made in respect of the goods returned or overcharge claimed . After investigation the supplier, if in agreement with the claim, issues a credit note (C/N) to the customer. One copy is sent to the debtor and the other is the source document for the entry in the business's Debtors Allowances Journal (DAJ) The DAJ is like a sales returns and overcharges journal.
bad debts a/c Dr To sundry debtors a/c