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LESSON 9-4

LESSON 9-4. Journalizing Other Transactions Using a General Journal. MEMORANDUM FOR BUYING SUPPLIES ON ACCOUNT. page 254. BUYING SUPPLIES ON ACCOUNT. page 255. November 6. Bought store supplies on account from Gulf Craft Supply, $210.00. Memorandum No. 52. 2. 4. 3. 7. 1. 6. 5.

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LESSON 9-4

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  1. LESSON 9-4 Journalizing Other Transactions Using a General Journal

  2. MEMORANDUM FOR BUYING SUPPLIES ON ACCOUNT page 254 LESSON 9-4

  3. BUYING SUPPLIES ON ACCOUNT page 255 November 6. Bought store supplies on account from Gulf Craft Supply, $210.00. Memorandum No. 52. 2 4 3 7 1 6 5 1. Write the date. 5. Write the account title and vendor name. 2. Write the account title. 6. Place a diagonal line in the Post. Ref. column. 3. Write the memorandum number. 7. Write the credit amount. 4. Write the debit amount. LESSON 9-4

  4. DEBIT MEMORANDUM FOR PURCHASES RETURNS AND ALLOWANCES • Purchases Return:credit allowed for the purchase price of returned merchandise, resulting in a decrease in the customer’s accounts payable • Purchases Allowance:credit allowed for part of the purchase price of merchandise that is not returned, resulting in a decrease in the customer’s accounts payable • Debit Memorandum:a form prepared by the customer for returns and allowances LESSON 9-4

  5. DEBIT MEMORANDUM FOR PURCHASES RETURNS AND ALLOWANCES page 256 Why? Because customer records amount as a debit (deduction) to the vendor account to show the decrease in the amount owed. LESSON 9-4

  6. PURCHASES RETURNS AND ALLOWANCES • Purchases returns and allowances decrease the amount of purchases. • Therefore, Purchases Returns and Allowances is a contra account to Purchases. Normal Balances for Both Accounts • Purchases Returns and Allowances  Credit • Purchases  Debit LESSON 9-4

  7. JOURNALIZING PURCHASES RETURNS AND ALLOWANCES page 257 November 28. Returned merchandise to Crown Distributing, $252.00, covering Purchase Invoice No. 80. Debit Memorandum No. 78. 2 5 1 3 4 6 7 1. Write the date. 4. Write debit memorandum number. 5. Write the amount. 2. Write the account title and vendor name. 6. Write Purchases Returns and Allow. 3. Place a diagonal line in the Post. Ref. column. 7. Write the amount. LESSON 9-4

  8. TERMS REVIEW page 258 • purchases return • purchases allowance • debit memorandum LESSON 9-4

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