[Debit] Allowance for debtors account
[Credit] Accounts receivable account
Debit: Sales Returns & Allowances Credit: Accounts Receivable :)
sundry debtors A/c........DR 1000 TO Sales A/c 1000
Cash a/c to debtors a/c
Debtors are those customers who purchase goods from company on credit so no advance can be issued by debtors. on the other hand advance can be received from customers and accounting entry is as follows: [Debit] Cash / bank [Credit] Unearned revenue
debit cash / bankcredit accounts receivable
Debit: Sales Returns & Allowances Credit: Accounts Receivable :)
sundry debtors A/c........DR 1000 TO Sales A/c 1000
Cash a/c to debtors a/c
No entry for opening debtors these are just transferred from previous period to current period.
Debtors are those customers who purchase goods from company on credit so no advance can be issued by debtors. on the other hand advance can be received from customers and accounting entry is as follows: [Debit] Cash / bank [Credit] Unearned revenue
debit cash / bankcredit accounts receivable
debit cashcredit accounts receivable
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.
You make them to undesdand when we talk about debtors we talk about what
General Journal Sales Returns and Allowances - A company with sales returns and allowances can record them in the General Journal.
Debtors a/c Dr. Discount expense a/c Dr. To Sales a/c
Are the payment for cash(people who came and buy for cash ) Any entry can be posted into the general journal. It is really messy and long to post the stuff in the sales, sales returns and allowances, purchases and purchases returns and allowances jounal into the general jounal so those journals are created to make things easier. So basically, any entries that are posted to the cash payments journal can be posted to the general journal.