1. DEBIT MEMORANDUM FOR PURCHASES RETURNS AND ALLOWANCES Lesson 18-4, page 475
2. GENERAL LEDGER ACCOUNTS PAYABLE LEDGER Second Round, Inc. Accounts Payable Bal.820.00 Purchases Returns and Allowances JOURNALIZING PURCHASES RETURNS AND ALLOWANCES March 8. Returned merchandise to Second Round, Inc. $143.00, covering Purchase Invoice No. 230. Debit memorandum No. 78. Entered Debit side Credit side Accounts Affected Accounts Payable Purchases Returns and Allowances Change Increased Increased Classification Liability Contra cost normal balance normal balance 143.00 143.00 (New Bal. 677.00) normal balance 143.00 Lesson 18-4, page 476
3. JOURNALIZING PURCHASES RETURNS AND ALLOWANCES 1 2 3 4 5 6 7 1. Write the date. 2. Write the account title and vendor name in the Account Title column. 3. Place a diagonal line in the Post. Ref. column. 4. Write the debit memorandum number. 5. Write the debit amount. 6. Write the account title. 7. Write the credit amount. Lesson 18-4, page 476
4. POSTING FORM A GENERAL JOURNAL 2 1 3 5 4 4 1. Date 2. Journal Page Number 3. Credit 4. Account Balance 5. Account Numbers Lesson 18-4, page 477