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.
Cash a/c to debtors a/c
General Journal Sales Returns and Allowances - A company with sales returns and allowances can record them in the General Journal.
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