Question.4416 - Discussion - Chapter 7When a general journal entry is used to record sales returns, the credit of the entry must be posted twice. Does this cause the trial balance to be out of balance? Explain.
Answer Below:
Sales xxxxxxx are x reduction xx the xxxxxx sales xxxxx occurs xxxx a xxxxxxxx for xxxxxxxx reason xxxxxxx the xxxx for x cash xxxxxx or x credit xx his xxx account xxx reason xxx a xxxxx return xx usually xxxxxxx of x product xxxxxx or x service xxxxxxx Under xxx perpetual xxxxxxxxx system xxx entries xxx recorded xxx for xxxxx returned xxxxxxxxx in xxxxx cash xx accounts xxxxxxxxxx and xxxxx for xxxx of xxxxx sold xxx inventory xxxxxxxxxx returns xxx allowance xxx Accounts xxxxxxxxxx cash-cr xxxxxxxxxxxx Cost xx goods xxxxxxx Under xxx periodic xxxxxxxxx system xxxx entry xx made xxx sales xxxxxx EntrySales xxxxxxx and xxxxxxxxx -dr xxxxxxxx receivable xxxxxxx Hence xxxxx the xxxxxxxxx inventory xxxxxx the xxxxxx of xxx entry xxxx be xxxxxx twice xxxxxxMore Articles From ACC 101 OT 1 SU24 - Accounting I
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